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🇮🇩 Indonesia /Economy & Trade

Indonesia's PTPN III shifts rubber strategy from volume to quality and profit

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Indonesian state-owned plantation holding PT Perkebunan Nusantara III (PTPN III) is shifting its rubber business strategy.
  • The company will now focus on quality and long-term profitability rather than solely on production volume.
  • This change is driven by global industry shifts and aims to enhance competitiveness through sustainable practices and value-added products.

PT Perkebunan Nusantara III (PTPN III), Indonesia's state-owned plantation holding company, is undergoing a significant transformation of its rubber business strategy. In response to the evolving global rubber industry landscape, PTPN III is moving away from a sole focus on maximizing production volume towards enhancing quality and long-term profitability.

This forum serves as a platform to align policy directions, strengthen business strategies, and formulate implementation steps in facing the changing global rubber industry landscape.

— Rizal H. DamanikDirector of Production and Development at PTPN III, explaining the purpose of the Rubber Business Strategy & Execution Forum.

The company's new approach emphasizes sustainable management of biological assets, data-driven decision-making, and the development of high-value-added rubber products. This strategic shift was discussed at the Rubber Business Strategy & Execution Forum in Bogor, themed "Rethinking Rubber Exploitation." Rizal H. Damanik, Director of Production and Development at PTPN III, stated that the forum served as a platform to align business strategies and formulate implementation steps for navigating global industry changes.

The company's future competitiveness will be determined by its ability to manage biological assets sustainably, produce higher value-added products, and implement data-driven and research-based decision-making.

— Rizal H. DamanikDescribing the key factors for future success in the rubber industry.

Damanik explained that future competitiveness will depend on sustainable asset management, higher-value products, and informed decision-making based on research. PTPN III is adopting a "diagnosis before decision" principle, ensuring all technical choices, from tapping systems to stimulant use, are based on plant health analysis, field conditions, and cost efficiency. This aims to extend the productive life of rubber trees and ensure sustainable yield increases.

The dynamics of the global commodity industry demand that we continue to adapt.

— Rizal H. DamanikHighlighting the need for adaptation in the face of global market changes.

Furthermore, PTPN III is reorienting its production towards premium-grade liquid raw materials, such as concentrated latex and high-quality rubber sheets, targeting an ideal ratio of 70 percent for these products to boost sales value and international market competitiveness. The company is also restructuring over 87,000 hectares of productive rubber plantations into clusters based on their characteristics and potential, optimizing economic value before replanting programs.

The transformation of the rubber business is no longer sufficient by focusing solely on increasing production volume. The company's future competitiveness will be determined by its ability to manage biological assets sustainably, produce higher value-added products, and implement data-driven and research-based decision-making.

— Rizal H. DamanikElaborating on the shift from volume-based to quality-focused production.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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