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Indonesia ready to coordinate with Thailand, Malaysia to address declining rubber price
Indonesia is ready to hold talks with Thailand and Malaysia to address a shortfall in global rubber prices. "We need cooperation with Thailand and Malaysia, at least. We cannot work alone," Indonesia’s Coordinating Minister for Economic Affairs Darmin Nasution said in Jakarta on Friday (11 January 2019). Coordination with the two neighboring countries is necessary, as the global rubber prices fall despite no oversupply, he said.
"As we all see, the rubber market is not oversupplied. But why does its price continue to fall? There must be something wrong," he said. He alleged that speculators have played the game with rubber prices and that rubber-producing countries need to coordinate to find a solution to the issue. "Many speculators have played the game with information. The stocks are enough for two months and there is no reason for prices to fall," he said.
After holding talks with Thailand and Malaysia, the Indonesian government will meet with commodity exchanges in Singapore and Shanghai. "We will trace where the rubber price is fixed. It turns out it is fixed at the Singapore and Shanghai commodity exchanges," he said. The discussions will help stabilize rubber prices, which will no longer harm rubber growers and disturb rubber production.