Economic perspective of indonesian rubber on agroforestry development

¹ Researcher, Indonesian Center for Agriculture Socio Economic and Policy Studies (ICASEPS), Ministry of Agriculture Indonesia, Indonesia
² Staff, Cooperation Bureau Ministry of Agriculture Indonesia, Indonesia

^* Corresponding author: miftahul_azis@yahoo.com

Abstract

Rubber commodity is one of the plantation commodities that supports agroforestry, besides that it is one of the attractors in the creation of labor in rural areas. The economic linkages around intensive plantations will affect development of rubber in agroforestry areas. Rubber agroforestry is important because demands of global trade will encourage the development of agroforestry itself. For this reason, this paper can provide a description of the rubber economy in supporting the national economy. The data used is secondary data including national and global data, especially for countries of ITRC forum group members. The analytical method uses Principal Component Analysis which is expected to provide an overview of the conditions for the development of the national rubber economy. The results showed that 55.34 percent indicated that the economic development of rubber was already export-oriented, while 8.56 percent indicated that global production would affect the decline in rubber area, while 13.70 percent of the global relative price had its own characteristics. Thus, it can be seen that the challenges ahead, need to anticipate the development of rubber cultivation, both in monoculture and agroforestry plantations, which can support each other with an interconnected agribusiness system for harmony with global demand.