A Comparative Study of the Rubber Industry Supply Chain in Thailand Malaysia and Indonesia

Abstract

This research aims to analyze and compare the supply chain of the rubber industry in Indonesia, Malaysia and Thailand. The methods of this study include collecting primary and secondary data, rubber-industry related documentaries and research reviews, in-depth interviews with entrepreneurs, the private sector and government agencies in Indonesia, Malaysia and Thailand. This study found that the rubber-industry supply chains of these three countries are quite similar, except for the production proportion of upstream, midstream and downstream products. In Indonesia and Thailand, products gained from the supply chain are sufficient for domestic demands and exports, although limited midstream and downstream products need to be imported, however they are minimal when compared with domestic production. Malaysia mostly imports midstream and downstream products due to inadequate domestic production to meet the demands within the country. Malaysia imports rubber and its products mostly from Thailand, followed by Vietnam and Indonesia. The study found that Indonesia, Malaysia and Thailand are not only competitors in the global market, but also are important partners in connecting and sharing products and raw materials with each other in both midstream and downstream industries.