South Sumatra Province continues to rely on smallholder plantations as the main contributor to national rubber production, with a total land area reaching 1.3 million hectares. According to recent data, approximately 95 percent of this total area is managed independently by local communities, while the remainder is managed by large corporations. Despite being a flagship commodity, rubber production trends in this region have experienced a significant decline since 2022 due to various field factors. The regional government is now focusing on strategic solutions to ensure the sustainability of this sector, which serves as a livelihood for millions of rural residents.
In response to these challenges, the government is continuously promoting crop rejuvenation programs and the downstreaming of rubber products to increase added value for farmers. The decline in production, triggered by leaf fall disease and land conversion, is a serious concern for associations and relevant stakeholders. Efforts to restore land productivity are being carried out through the provision of superior seedlings and technical assistance for more modern and efficient cultivation. With these improvement measures, the South Sumatra rubber industry is expected to bounce back and strengthen Indonesia's position as a major player in the global rubber market by 2026.
