Sustainable Natural Rubber Becomes Key to Global Markets as North Sumatra Farmers Gain Attention from the Global Tyre Industry
Medan, 19 October 2026 — Sustainability is becoming an increasingly important factor in the global natural rubber industry. Producers are no longer required only to deliver high-quality, competitive raw materials, but must also demonstrate the origin of their rubber, responsible production practices, environmental protection and the welfare of farmers.
Recent developments highlight this growing trend. On 2 October 2026, Malaysia launched the Malaysian Sustainable Natural Rubber (MSNR) Global Alliance to strengthen industry collaboration, traceability and responsible sourcing. Malaysia is also developing the digital MSNR Trace system, which integrates geolocation and supply chain data to improve transparency and accountability.
Meanwhile, a sustainability report published in October 2026 by the global tyre industry's Tire Industry Project showed that carbon emissions intensity among its member companies had fallen by 29.2% compared with 2021. Procurement of electricity from renewable sources reached 60.5%, while all members continued to report on their responsible natural rubber sourcing efforts. These developments demonstrate that sustainability initiatives extend across the entire industry value chain, from plantations to tyre manufacturing.
North Sumatra Included in Smallholder Farmer Support Programme
The global tyre industry's commitment to sustainability is also reflected in the expansion of support programmes for smallholder natural rubber farmers in Indonesia. The second phase of the Sustainable Natural Rubber project began in April 2026, continuing activities in Jambi while expanding into Rantau Prapat, North Sumatra.
The programme, involving Sumitomo Rubber Singapore and natural rubber processor PT Hok Tong, aims to support approximately 1,740 smallholder farms annually, comprising 870 farming households in Jambi and another 870 in Rantau Prapat. The target is expected to increase progressively through April 2029.
During the first phase, which ran from 2022 to 2025, more than 1,000 farmers in Jambi received support. Productivity and profitability improved in the programme area, with rubber yields increasing by up to approximately 19%. The second phase continues to provide technical guidance and agricultural supplies to help farmers adopt more productive and sustainable practices.
The programme also forms part of a more structured approach to sustainable natural rubber procurement. Industry efforts are not limited to increasing production; they also seek to identify environmental and supply chain risks, strengthen farmers' capabilities and build long-term supply chain resilience.
Sustainability Extends to Nature Protection
The industry's approach is evolving beyond productivity improvements towards managing the impact of business activities on nature. One example is the AR3T framework developed by the Science Based Targets Network (SBTN), which groups actions into four categories: avoiding impacts, reducing impacts, restoring or regenerating nature, and transforming business practices.
This framework helps companies integrate risk assessments, farmer support and research into their sustainability strategies. In rubber cultivation, its application may include preventing deforestation, improving productivity on existing plantations, developing agroforestry practices and promoting more environmentally responsible farming methods.
Sustainability initiatives are also advancing in other producing countries. Malaysia is strengthening traceability through digital systems, while Thailand and Côte d'Ivoire have programmes involving smallholders, the protection of high-conservation-value areas and ecosystem restoration. In China, industry-supported projects also include rural community development and ecosystem restoration in Xishuangbanna. These initiatives demonstrate that rubber sustainability is increasingly linked to community welfare and biodiversity protection, alongside reliable raw material supplies.
Opportunities for Indonesia's Rubber Industry
For Indonesia, the next challenge is to ensure that sustainability initiatives reach smallholder farmers, collectors, processing factories and exporters. Traceability requires consistent, verifiable data on raw material origins. Its implementation must also be supported by appropriate technical assistance and financing to avoid placing an excessive burden on smallholders.
These needs are becoming increasingly relevant amid international market requirements, including the European Union Deforestation Regulation (EUDR). Industry players need to monitor applicable provisions and implementation timelines while preparing supply chain documentation that meets buyer requirements.
For North Sumatra, one of Indonesia's natural rubber processing centres, the expansion of farmer support programmes into Rantau Prapat presents an opportunity to strengthen partnerships between farmers and processing companies. Higher productivity, improved farmer incomes and raw material traceability can advance together to strengthen the industry's competitiveness.
Ultimately, sustainable natural rubber is more than a trade requirement. Its success depends on the ability of the entire supply chain to protect the environment, improve farmers' livelihoods and ensure a reliable supply of responsibly produced natural rubber for the global industry.