Rupiah Exchange Rates Press Rubber in North Sumatra

MEDAN- price if the rubber material in North Sumatra manufacturers continue to stay depressed or Rp23.200-Rp25.200 per kg due to the weakening of export prices and the rupiah over the U.S. Dollar....Joint Executive Secretary of the Indonesian Rubber Company (Gapkindo) of North Sumatra, Edy Irwansyah, in Medan, said, though the price of rubber (Bokar) which amounted to Rp23.200-Rp25.200 per kg was down considerably from the price on November 17, who still Rp25.500 - Rp27.500 per kg.
"The price drop was followed Bokar export prices and the rupiah over the weakened U.S. dollar," he said.
Indonesia rubber export prices in the stock SIR 20 jensi Singapore, Friday, November 25 to December shipments fell again to 3.149 U.S. dollars per kg of prices on November 17 for 3.387 U.S. dollars per kg.
Weakening demand expected to remain as the action of speculators take advantage of the momentum of the economic crisis in the United States and Europe amid the ongoing fluctuation is also U.S. dollar exchange rate.
He admits, though continued to weaken, Gapkindo not make an arrest because commodity exports as planned, the new policy was carried out when the price of less than 3 U.S. dollars per kg.
Rubber prices in the range of three dollars per kg was considered to be too dropped from the previous price of 4 dollars more per kg of rubber farmers in the South Labuhan Batu, K. Siregar, said the farmer is felt once the price drop bokar who live around Rp13.000 - Rp15.000 per kg it.
Moreover, he said, the production of increasingly stringent due to the impact of the rainy season penderesan disturbed.
"Sad also keep prices down, but when compared to current monetary crisis in 1997/1998 where Bokar not be sold because the exporter does not want to buy due to drop in export prices, mild as it is today," he said.
Farmers do not expect prices to fall further because most of the plants also would be replanted.
"Where else for living expenses let alone to buy new seeds, if prices continue to fall," he said.
Moreover, he said, today's economy has become harder because the price of rice continues to rise with the cheapest Rp6.700 per kg, (Ant)/Eksp