The land occupied by
Bakrie Sumatera Plantations has a history of rubber planting going back to 1911 and remained almost exclusively planted to rubber into the fourth generation. The replanting program is regularly done when the age of rubber tree attain 25 years old. In 1997, rubber replanting recommenced after a break of six years, while
oil palms were established at Kisaran.
The replanting program is aimed at producing trees to the highest standard of quality. This is achieved by:
- Using the best modern clones;
- Using intensive selection in the nursery phases;
- Using intensive management and fertilization to optimize growth and shorten the period of immaturity to four years or less.
The initial costs of such a program are higher than conventional programs, but even after discounted cash flow, the cost to bearing and the earlier returns ensure that the result is higher profits. Where the environmental conditions are suitable, clones with a potential to produce a large final harvest of timber will be selected.
The largest part of the production is processed into concentrated cream latex and concentrated centrifuged latex. The Company's certification in ISO 9002 Quality Management Systems has enabled it to export SIR10 rubber derived from estate cup lump at a premium to American auto manufacturers for special end uses which require the highest standards of integrity.
The prospects for natural rubber (NR) remain sound in the long term. In recent years the trend for synthetic rubber (SR) to take an ever larger share of total rubber market has been stopped and even reversed. Companies like BSP in Indonesia are in a strong position to maintain market share in the future by producing quality products.
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