Natural latex in primary forms market in Indonesia

Earlier Report Observations

The Indonesian natural latex market contracted from 3 649 thousand tons in 2018 to 2 247 thousand tons in 2023. Initial pressure came from government policies promoting downstream industrialization (hilirisasi) to increase the value of commodity-based sectors, which began redirecting raw latex usage. Simultaneously, stricter food packaging labeling regulations imposed new compliance requirements on processors. The most significant disruption occurred in 2020 when the COVID-19 pandemic severely disrupted global and domestic supply chains, causing a sharp drop in market volume to 3 059 thousand tons.

After the pandemic, regulatory pressures intensified and contributed to the continued decline. New BPOM labeling regulations (No. 20/2021) and tighter controls on the import of chemicals and hazardous materials increased operational costs for producers. The market contraction deepened with the introduction of Extended Producer Responsibility (EPR) principles in 2023, which mandated producers to manage packaging waste, further adding to cost burdens. While consumer preferences increasingly favored sustainable and locally sourced products, this shift required additional investment in green practices and did not reverse the overall downward trend in market volume.

Production natural latex in primary forms in Indonesia

In kind, 2018-2021, K t

From 2018 to 2021, Indonesia maintained its position as the world's second-largest producer of natural latex in primary forms.

Top producers of natural latex in primary forms, 2018-2021

World map of production of natural latex in primary forms, 2018-2021

After two years of decline, Indonesia's production of natural latex in primary forms rebounded. In 2021, output reached 3 045 K t, showing minimal change from the 3 037 K t recorded in 2020. Over the 2018-2021 period, production fell by 16.1%, with a compound annual growth rate of -5.7%. The lowest production level was in 2020, which also saw the steepest annual decline of 11.9%.

Annual dynamics of production in Indonesia in kind, 2018-2021, K t

Exports natural latex in primary forms from Indonesia

Exports in kind, t

Indonesia's exports of natural latex in primary forms declined for the second year in a row. In 2021, exports totaled 2 395 t, a sharp drop of 54.6% compared to 2020. Between 2018 and 2021, exports decreased by 53.5%, translating to an annualized decline of 22.5%. The peak export volume was in 2019 at 5 571 t, which also marked the largest annual increase of 8.1%.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, t

From 2018 to 2021, the top destinations for Indonesia's natural latex in primary forms exports were Turkey, accounting for 31.5% of the volume, Vietnam at 19.7%, and Brazil at 18.3%. Together, these three countries represented 69.5% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, K $ US

In 2021, the value of Indonesia's natural latex in primary forms exports was 4 479 K US dollars, down 31.7% from 2020. Over the 2018-2021 period, export value decreased by 39.3%, with a compound annual growth rate of -15.3%. The largest annual increase occurred in 2020 at 1.3%.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, K $ US

From 2018 to 2021, Vietnam was the leading destination for Indonesia's natural latex in primary forms exports by value, with a 39.8% share, followed by Turkey at 23.0% and Brazil at 14.6%. Combined, these three markets accounted for 77.4% of total export value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports natural latex in primary forms to Indonesia

Imports in kind, t

Indonesia imported 26 024 t of natural latex in primary forms in 2021, a slight decrease of 1.7% from the previous year. Over the 2018-2021 period, imports grew by 8%, with a compound annual growth rate of 2.6%. The lowest import volume was in 2019 at 22 014 t, which saw an 8.6% decline, while the highest was in 2020 at 26 485 t, marking a 20.3% increase.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, t

From 2018 to 2021, nearly all of Indonesia's natural latex in primary forms imports by volume came from three key markets: Thailand, Malaysia, and Vietnam, which together accounted for 99.6% of total imports.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, K $ US

Indonesia's imports of natural latex in primary forms increased for the second consecutive year. In 2021, import value surged to 39 056 K US dollars, a dramatic rise of 29.6% compared to 2020. Between 2018 and 2021, import value grew by 45.6%, equating to an annualized increase of 13.3%. The lowest value was in 2019 at 23 352 K US dollars, which experienced a 13.0% decline.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, K $ US

From 2018 to 2021, Thailand was the largest supplier of natural latex in primary forms to Indonesia by value, with a 41.3% share, followed by Malaysia at 33.7% and Vietnam at 24.3%. Together, these three countries made up 99.3% of total import value.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021