Indonesian Tyre Production to be Flat in 2009, Says Industry Expert

Indonesia’s passenger car tyre production may prove to be weaker than initially expected in 2009, warns a senior representative from the country’s tyre industry. According to Aziz Pane, chairman of the Indonesian Tyre Producers Association, production may remain unchanged from 2008’s output of 41 million units.

“Initially, we expected car tyre production to hit 45 million units, but after the financial crisis demand is slowing,” he said. Pane added, however, that a recovery is anticipated before the end of 2009. Approximately 80 per cent of Indonesia’s passenger car tyre production is exported, therefore global automotive industry fluctuations are strongly felt by manufacturers.

Another regional issue is the current low natural rubber prices, and Pane believes this may prompt manufacturers to utilise a greater proportion of natural rubber. “We now use 55 per cent natural rubber in the tyre producing process and the rest is synthetic rubber,” he explained. But the share for natural rubber may increase to help support the farmers.”