In brief
Indonesia’s National Development Planning Ministry teamed with European scholars to conduct a Value Chain Analysis for Development on the nation’s rubber sector. Fieldwork at the Sungei Putih Research Unit aims to generate policy recommendations for smallholder farmers, processing units, and downstream industries in North Sumatra, prioritizing sustainability and market access.
On Sunday in Medan, Indonesia’s National Development Planning Ministry (Bappenas) and European researchers conducted a focused fieldwork visit to the Sungei Putih Research Unit of PT Riset Perkebunan Nusantara’s Rubber Research Center, a key step in a larger Value Chain Analysis for Development (VCA4D) aimed at strengthening the country’s rubber industry.
Haekal Heriyanto, a representative of Bappenas’ Food and Agriculture Directorate, explained that the study aligns with National Priority 5 of the 2025‑2029 National Medium‑Term Development Plan, which seeks to expand downstream processing, resource‑based industries, and domestic value added.
According to Heriyanto, the VCA4D effort intends to raise rubber output, improve raw‑rubber quality, strengthen farmer organisations and raw‑rubber processing and marketing units (UPPBs), develop downstream industries, and expand market access.
“European and Indonesian researchers, together with Bappenas representatives, visited the Sungei Putih Research Unit of PT Riset Perkebunan Nusantara’s Rubber Research Center,” Heriyanto said in a statement received in Medan.
The visit is part of fieldwork to build a fuller picture of the conditions, developments, challenges and potential of Indonesia’s rubber value chain, particularly in North Sumatra, he added.
He highlighted sustainability as a priority, noting that international markets increasingly demand products that meet environmental and social standards, including traceability and deforestation‑free requirements.
The research team comprises European scholars Eric Penot from CIRAD (France), Ravinder Kumar from the University of Greenwich (UK), Ieben Broeckhoven (Belgium), Heval Yildirim from Agrinatura, as well as Indonesian researchers Prof. Sahara and Augusta Ivanovich from IPB and Agus Setyarso from INSTIPER Yogyakarta.
Fieldwork Focuses on Smallholder Production and Downstream Processing
In their on‑site observations, the researchers examined the supply chain from smallholder farms where rubber latex is harvested, through processing units that churn raw latex into usable products, to marketing structures that bring finished goods to the national and international markets.
Smallholder farmers in North Sumatra play a critical role in Indonesia’s rubber production, yet they often face constraints such as limited access to quality input, low bargaining power, and fragmented market information.
By collecting on‑ground data and staging interviews with farmer cooperatives, processing units, and downstream enterprises, the VCA4D team seeks to identify bottlenecks that reduce overall value as goods move along the chain.
Processing units—named “upstream production processing and marketing units” (UPPBs) in Bappenas terminology—are responsible for converting raw latex into intermediates, such as unprocessed rubber sheets or globs, before they are shipped to downstream manufacturers or exported.
The team intends to evaluate the technical efficiency of these units, assess the quality of raw latex, and measure the environmental footprint of processing activities, including energy consumption and emission of volatile organic compounds.
Downstream industries, which manufacture finished rubber products like tyres, belts, or hoses, depend heavily on consistent supply of high‑quality raw material. The research team will map how quality standards differ across these sectors, and how traceability systems can be integrated to meet global demands.
Heriyanto noted that enhancing farmer organization capacity is essential for collective bargaining and shared access to training and credit facilities.
“We want to create a more resilient network where smallholders can negotiate better prices and invest in modern harvesting techniques,” he said.
In addition, the VCA4D team will work closely with local extension services and academic institutions, such as IPB, to disseminate findings and recommend policy changes that can streamline certification procedures and support sustainable certification for rubber growers.
The research also considers regional differences, acknowledging that rubber varieties and climatic conditions vary across provinces, which affects both yield and latex quality.
North Sumatra’s unique combination of tropical climate and relatively high rainfall levels can influence both the rate of latex flow and the prevalence of diseases such as leaf blight. Field data on these factors will feed into the VCA4D models.
By integrating empirical field observations with policy analysis, the team aims to produce evidence‑based recommendations that will be tailored to local conditions in North Sumatra and, eventually, scalable across Indonesia.
Strategically, the study will feed into Bappenas’ broader effort to diversify and strengthen resource‑based sectors. Enhancing rubber’s downstream industrial footprint is expected to augment domestic value‑added and create employment opportunities.
The project’s emphasis on sustainability aligns with global moves toward responsible sourcing. The International Rubber Study Group and other stakeholders have noted that Asian rubber exporters are under increasing pressure to comply with traceability and deforestation-free commitments, especially from the European Union and Japan.
In practice, this means that supply chains need robust data systems that can track rubber from plantation, through processing, to final product distribution, ensuring accountability at every link.
Heriyanto emphasised the importance of input from stakeholders and research institutions in deepening the analysis and producing practical policy recommendations appropriate to on‑the‑ground realities.
The research centre at Sungei Putih is regarded as a leading facility for rubber science, with resources for plant breeding, pest management, and processing technology.
During the visit, Suroso, the head of the Rubber Research Center, welcomed the international team, highlighting an increasing collaboration with overseas researchers on topics such as latex quality improvement and disease management.
From a technological perspective, the VCA4D methodology employs a life‑cycle approach that examines inputs, outputs, and environmental impacts across the chain. It incorporates both quantitative metrics—such as yield per hectare, raw‑latex purity, and processing efficiency—and qualitative assessments of organisational structures and market dynamics.
The research will generate a set of policy instruments, ranging from incentives for sustainable practices to streamlined certification pathways, that policymakers may adopt to energise Indonesia’s rubber sector.
By focusing on North Sumatra, one of the country’s major rubber provinces, the team hopes to produce a pilot model that can be replicated elsewhere.
Once conclusions are finalized, Bappenas plans to disseminate findings through industry workshops, policy briefings, and academic publications, ensuring that smallholder farmers, processing units, and downstream enterprises are informed and can implement recommended improvements.
The collaboration between Bappenas and European academics demonstrates Indonesia’s commitment to leveraging global expertise to refine its natural resource sectors, blending local knowledge with advanced research methodologies to foster a more sustainable and economically vibrant rubber economy.
