Existence of Natural Rubber Exports to America Efforts to Improve the Economy of Indonesian People

Nurul Laili Kurniati; Nur Ahmadi Bi Rahmani; Aqwa Naser Daulay

doi:10.21927/jesi.2024.14 (1).246-259

Existence of Natural Rubber Exports to America Efforts to Improve the Economy of Indonesian People

Nurul Laili Kurniati, Nur Ahmadi Bi Rahmani, Aqwa Naser Daulay

Abstract

The purpose of this research is to find out whether Indonesia sends natural rubber to America to help the income of the Indonesian people, especially from an Islamic economic perspective. To better understand Indonesia's natural rubber exports to America, a qualitative descriptive research method with critical review analysis method was used. This research data was obtained through comprehensive literature analysis, including critical review techniques and utilizing secondary data from various sources, such as websites and previous research. The research results show that the number of rubber exporters varies every year, influenced by fluctuations in rubber output levels. This aspect can have a negative impact on the survival of Indonesian rubber because it affects income. Despite this, there was a consistent increase in demand for natural rubber throughout the year, indicating growth in the overall value of global natural rubber exports. The increase in export value shows that there is a big opportunity for Indonesia to expand its exports, especially considering the increasing world demand for natural rubber. In 2021, Indonesia exported 9.8 tons of natural rubber to the American continent, while world natural rubber production in 2022 reached 10.03 tons, showing growth. On the other hand, the production and use of artificial rubber has decreased. The huge growth in money generated from Indonesia's natural rubber exports to the United States plays an important role in increasing the country's foreign exchange reserves, which can be used for various purposes such as imports, debt settlement, and driving economic progress. Apart from that, the natural rubber sector in Indonesia also creates jobs, both in the plantation sector and processing businesses. Indonesian rubber exports can significantly increase the automotive sector, especially in tire manufacturing. The increasing demand for Indonesian natural rubber as the main component of tires has quite big prospects for the progress of the automotive sector in Indonesia.

Keywords

Natural Rubber Exports, Community Economy, Indonesia

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DOI: http://dx.doi.org/10.21927/jesi.2024.14%20(1).246-259