Medan, N Sumatra - Indonesia's natural rubber hit US$1.855 a kg in the global market on Friday, fueled by surging  global crude prices and higher demand from China.

"The export price of SIR20 hit US$2.855 a kg on Friday after falling to US$2.625 on March 24 from US$2.81 on February 21," the executive secretary of the North Sumatra chapter of the Indonesian Rubber Producers Association (Gapkindo), Edy Irwansyah, said on Sunday.

The higher crude oil prices prompted Chinese companies to switch from synthetic to natural rubber, he said.

Unlike in the past, synthetic rubber was currently more expensive than natural rubber due to the global crude price hike, he said.

Indonesia is now the world's second biggest natural rubber producer after Thailand. Indonesia produced nearly 2.8 million tonnes of rubber in 2007. - Source : Antara News Agency, 12 May 2008