South Kalimantan is one of the country`s main rubber producing regions.Banjarmasin (ANTARA News) - Rubber exports from South Kalimantan shrank 41.34 percent to US$74.1 million in the first half of this year from US$126 million in the same period last year.
Head of the foreign trade division Gusti Yasni Iqbal attributed the decline in rubber export earning to shrinking price of that commodity.
Exports continued to rise in volume but not enough to offset the decline in price, Gusti Yasni said, adding export rose 15.67 percent to 29 tons in the first half of this year.
Weak demand following the global crisis caused the price fall resulting in a decline in export earning, he said here on Saturday.
South Kalimantan is one of the country`s main rubber producing regions.
Indonesia is the second largest producer and exporter of natural rubber after Thailand.
The decline in rubber exports, however, did not have much effect on the province`s total export earning Gusti Yasni said.
Rubber contributes only a little to the province`s total export earning , he said, adding , coal is its largest export commodity.
However, the rubber price fall is feared to discourage farmers to maintain their rubber plantations.
Some farmers have converted their rubber plantations into oil palm plantations.
(Uu.AS/H-YH/H-ASG)
Editor: Priyambodo RH
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