MODEL FOR RUBBER RAW MATERIAL AND NATURAL GAS SUPPLY DETERMINATION TO SUPPORT RUBBER GLOVES INDUSTRY

• Main Author: (NIM : 23411036), FATMAYANTI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/18461
• Institution: Institut Teknologi Bandung

Indonesian rubber export is still dominated by raw materials rather than value-added rubber or end products. This condition will affect the availability of raw materials in domestic market, and decrease the export competitiveness of this country. Indonesia Government think an export tax (Bea Keluar/BK) is needed for this condition in order to limit the export of raw materials so they can be processed into some end products (downstream). Government also need a policy to improve the ability of the downstream rubber industry to absorb the raw materials by ensuring the fuel supply for the industries. The aim of this research is to examine two kind of policy proposals. The first one is export tax for raw materials, and the second one is gas subsidies for industries. This research is focused in rubber glove industries because they are now still facing the supply shortage of natural gas as their fuel. The method which used to assess the two policies is constrained optimization models. The objective functions for each model are to maximize the total benefit for rubber trading entities (producers, consumers, industries, and government). There are four models developed in this research using three projection scenarios for rubber trade data, they are normal scenario, pessimistic, and optimistic. Data processing for this research showed that: In the normal scenario, the proposed policies are export tax for natural rubber and natural gas subsidies at the same time for the year 2011-2017, continued by export tax for natural rubber for the next years. In the pessimistic scenario, the proposed policy is export tax for natural rubber for the years 2011-2020. The last one is the optimistic scenario of the proposed policy is export tax for natural rubber and subsidies for natural gas for the year 2011-2016, continued by export tax for natural rubber for the next year The analysis of the data processing showed that the application of Export tax for rubber raw materials will cause a reduction in benefits for producers of rubber raw materials because of the benefits they receive should be submitted to the government as a total of duties imposed on them. While natural gas subsidies will benefit the industry as it will reduce their production costs especially fuel costs. In addition to these gains, the industry has also benefited from the increase in the fuel supply so that productivity can be increased and the sale is also expected to increase. Export tax implementation for rubber raw material will benefit the government because it is going to be their revenue, whereas natural gas policy will be a deduction for government benefits.