Sumitomo Rubber Expands Indonesian Natural Rubber Smallholder Support Program

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Sumitomo Rubber Expands Indonesian Natural Rubber Smallholder Support Program

· Sumitomo Rubber Industries · Sustainability

DUNLOP is scaling Phase 2 of its Sustainable Natural Rubber smallholder support project in Indonesia, running from April 2026 to April 2029 through subsidiary SUMITOMO RUBBER SINGAPORE with PT. Hok Tong. Phase 2 continues work in Jambi and extends coverage to Rantau Prapat in North Sumatra, targeting about 1,740 farms annually. Phase 1 (2022–2025) supported more than 1,000 farmers in Jambi, with natural rubber yields rising by up to approximately 19%.

Why it matters

Expanded farmer support in Sumatra's rubber-growing regions aims to improve yields and supply stability for natural rubber, a key raw material for DUNLOP tires and related rubber-consuming industries.

Key facts

Companies Sumitomo Rubber Industries, DUNLOP Group, SUMITOMO RUBBER SINGAPORE PTE. LTD., PT. Hok Tong, PT. Hok Tong Indonesia, Halcyon Agri Corporation Ltd.
Chemicals natural rubber
Capacity Target of approximately 1,740 farms each year; 870 households in Jambi and 870 households in Rantau Prapat annually
Location Jambi and Rantau Prapat, Sumatra, Indonesia
Timing 2022, April 2026, April 2029, 2022–2025, October 8, 2026
Partners PT. Hok Tong, Halcyon Agri Corporation Ltd., PT. Hok Tong Indonesia
End uses tires

Market context

Natural rubber is harvested as latex from Hevea brasiliensis trees and is valued for its elasticity, tensile strength and fatigue resistance, properties that make it essential in tire treads and sidewalls, particularly for truck and aircraft tires. Demand is driven mainly by the automotive and tire industries, with additional use in conveyor belts, industrial hoses, gloves and medical products. Much of the world's supply comes from smallholder farms in Southeast Asia, where yields, tree age, disease pressure and farm practices vary widely. As a result, the output of smallholders strongly influences the consistency of supply and the price volatility buyers face. Programs that raise productivity and traceability at the farm level can make volumes more predictable for tire makers and their suppliers, while also reducing pressure to source from newly cleared land. Such efforts tend to matter most to buyers who need steady quality and documented sourcing.

Source: official release on srigroup.co.jp. Summary and context written by Market Krystal.

About Sumitomo Rubber Industries

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