Indonesia Natural Rubber HS400122 Export Data 2025 May Overview

Indonesia Natural Rubber (HS 400122) 2025 May Export: Key Takeaways

Indonesia’s Natural Rubber (HS Code 400122) exports in May 2025 reveal a stable, bulk-commodity trade dominated by the U.S., Japan, and China, which account for over half the market share. Buyer concentration is high among industrial economies, with demand driven by tire and automotive manufacturing, ensuring steady volume-based pricing. The market shows no signs of volatility, reinforcing long-term supply contracts as a low-risk strategy for buyers. Sellers benefit from predictable demand but must maintain grade consistency to retain key partnerships. This analysis covers May 2025 and is based on cleanly processed Customs data from the yTrade database.

Indonesia Natural Rubber (HS 400122) 2025 May Export Background

Indonesia Natural Rubber (HS Code 400122), covering technically specified rubber in primary forms or sheets, fuels global industries like tires and automotive parts due to its durability and flexibility. Despite Indonesia’s March 2025 export policy update (MOF Decree No. 6/KM.4/2025), this commodity remains freely exportable, reinforcing its role as a key supplier [SSEK]. With stable demand and no new restrictions as of May 2025, Indonesia’s Natural Rubber exports continue to dominate, supported by re-exports via hubs like Singapore.

Indonesia Natural Rubber (HS 400122) 2025 May Export: Trend Summary

Key Observations

In May 2025, Indonesia's Natural Rubber exports under HS Code 400122 reached a value of 280.04 million USD with a volume of 143.24 million kg, showing a mixed performance with volume growth but value decline from the previous month.

Price and Volume Dynamics

The monthly trend reveals a 1.4% increase in export volume from April to May, while value dropped by 2.2%, indicating lower average prices. This pattern aligns with typical seasonal supply increases in natural rubber production, as May often sees heightened harvesting activity in Indonesia, boosting available stock for export. The consistent volume growth throughout early 2025 suggests stable output, but price pressures emerged due to ample supply meeting global demand cycles.

External Context and Outlook

Policy stability has supported this activity, as [SSEK] confirms no new export restrictions for HS Code 400122 under Indonesia's recent decree, ensuring uninterrupted trade flows. This regulatory certainty likely facilitated the volume rise, though value softness may reflect broader market dynamics like competitive pricing or currency effects. Looking ahead, Indonesia Natural Rubber HS Code 400122 Export 2025 May trends are expected to persist, influenced by global industrial demand and seasonal production patterns.

Indonesia Natural Rubber (HS 400122) 2025 May Export: HS Code Breakdown

Product Specialization and Concentration

Indonesia's Natural Rubber HS Code 400122 export in 2025 May is overwhelmingly concentrated in a single product: Rubber; technically specified natural rubber (TSNR), in primary forms or in plates, sheets or strip, under sub-code 40012220. This product accounts for 92% of the total export value and 92% of the weight, with a unit price of $1.95 per kilogram. Two minor sub-codes, 40012290 and 40012230, show extreme price anomalies at $3.57/kg and $3.59/kg respectively, but they represent less than 0.2% of the total value and are isolated from the main analysis.

Value-Chain Structure and Grade Analysis

The remaining non-anomalous sub-codes, including 40012210 and 40012240, form a homogeneous group with nearly identical product descriptions and unit prices close to $1.96-$1.97/kg. This uniformity confirms that Indonesia's export under this code is a bulk commodity trade, focused on standardized, technically specified natural rubber in primary forms. The structure lacks significant value-add stages or quality differentiation, indicating that pricing is likely tied to global commodity indices rather than product-specific features.

Strategic Implication and Pricing Power

For market players, Indonesia's Natural Rubber HS Code 400122 export is a high-volume, low-differentiation business where pricing power depends on scale and cost efficiency. Exporters must compete on volume and operational margins, as the product is fungible and price-sensitive. [SSEK] confirms no export bans apply to this code, reducing regulatory risk but emphasizing the need for competitive pricing. Strategic focus should remain on maintaining large-scale production and logistics efficiency to leverage Indonesia's dominant market position.

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Indonesia Natural Rubber (HS 400122) 2025 May Export: Market Concentration

Geographic Concentration and Dominant Role

The United States, Japan, and China are the dominant buyers for Indonesia Natural Rubber HS Code 400122 Export 2025 May, collectively taking over half the market share. The tight spread between their value and weight ratios confirms this is a bulk commodity trade, where price is driven by volume and grade consistency rather than complex manufacturing value.

Partner Countries Clusters and Underlying Causes

The trade flow splits into three clear clusters. The first is the top tier of major industrial economies—the US, Japan, and China—who are large-volume consumers for tire and automotive parts manufacturing. The second cluster includes India, Brazil, South Korea, Germany, and Mexico, representing a mix of growing automotive sectors and rubber goods producers that source steady volumes. The final cluster consists of Canada and Russia, smaller but consistent buyers likely fulfilling specific regional or industrial needs.

Forward Strategy and Supply Chain Implications

For buyers, this market's stability means securing long-term supply contracts from Indonesia is a low-risk strategy for steady raw material access. [SSEK] confirms natural rubber faces no new export restrictions, reinforcing supply predictability. Sellers should focus on maintaining quality consistency to retain their strong position with these major industrial partners.

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Indonesia Natural Rubber (HS 400122) 2025 May Export: Action Plan for Natural Rubber Market Expansion

Strategic Supply Chain Overview

Indonesia Natural Rubber Export 2025 May under HS Code 400122 operates as a bulk commodity trade. Price is driven by global rubber indices and consistent quality, not product features. The supply chain relies on high-volume sales to major industrial buyers in the US, Japan, and China. This creates a stable but concentrated revenue stream, with vulnerability to demand shifts in the automotive sector. Indonesia's role is as a key supplier of raw material, requiring efficient logistics and scale to maintain competitiveness.

Action Plan: Data-Driven Steps for Natural Rubber Market Execution

• Use transaction frequency data to align production with buyer order cycles. This prevents inventory overstock and ensures timely fulfillment for high-value clients.
• Analyze geographic buyer clusters to optimize shipping routes and reduce logistics costs. This maintains competitive pricing for bulk shipments to major markets.
• Monitor unit price trends for minor HS sub-codes to identify niche demand opportunities. This diversifies revenue without disrupting core bulk operations.
• Track regulatory updates using sources like SSEK to anticipate policy changes affecting export flows. This minimizes disruption risks for long-term contracts.
• Develop flexible sales terms for low-frequency buyers to capture spot market demand. This expands the customer base beyond dominant bulk purchasers.

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Frequently Asked Questions

Q1. What is driving the recent changes in Indonesia Natural Rubber Export 2025 May?

The export volume rose 1.4% in May 2025, but value dropped 2.2% due to seasonal supply increases and lower average prices. Stable production and global demand cycles influenced this trend, with no regulatory disruptions affecting trade flows.

Q2. Who are the main partner countries in this Indonesia Natural Rubber Export 2025 May?

The United States, Japan, and China dominate, collectively accounting for over half the market share. They import bulk quantities for tire and automotive manufacturing.

Q3. Why does the unit price differ across Indonesia Natural Rubber Export 2025 May partner countries?

Price differences stem from minor sub-codes like 40012290 and 40012230, which have anomalies ($3.57–$3.59/kg) but represent less than 0.2% of exports. The bulk trade (92%) is standardized at ~$1.95/kg.

Q4. What should exporters in Indonesia focus on in the current Natural Rubber export market?

Exporters must prioritize high-value, high-frequency buyers (86% of trade) while diversifying to mitigate reliance on this segment. Cost efficiency and scale are critical in this price-sensitive bulk market.

Q5. What does this Indonesia Natural Rubber export pattern mean for buyers in partner countries?

Buyers benefit from stable, large-scale supply with predictable pricing tied to global indices. Long-term contracts are low-risk due to Indonesia’s consistent output and absence of export bans.

Q6. How is Natural Rubber typically used in this trade flow?

The product is primarily technically specified natural rubber (TSNR) in primary forms, used for industrial applications like tire manufacturing and automotive parts.