IJSRP, Volume 6, Issue 9, September 2016 Edition [ISSN 2250-3153]
MirawatiYanita M. Yazid; ,ZulkifliAlamsyah, Andy Mulyana
Abstract:
Rubberis one of theplantationcommoditieswhich havea rolequite important ineconomic activitiesinIndonesia. Rubber provides the main livelihood for over one million families and more than two third of all production comes from smallholders. Rubberis alsoone of Indonesian export commodities asa foreign exchange earnerin thecountryoutsideoil and gas.Approximately86.95percentof Indonesia's naturalrubberproductionis exportedto foreigncountries andonly a small portionis consumeddomestically. This research aim to asses the determainant for rubber export in Indonesia. We use Stata software and estimate the variables by robust regression, Result showed a significant relation between production level, exchange rate and export quantity in the lag time. Indonesia earned substantial foreign exchange from crumb rubber exports. However, major fluctuations in the export earnings have raised concern about the country’s future growth potentials and self-sustainability.