Indonesia's CPO exports until last May 4.5 million tons

Medan, North Sumatra (Antara News) - Indonesia`s crude palm oil (CPO) exports up to May this year reached 4.5 million tons, less than half of the target for this year set at 11.3 million tons, CPO producers` association chairman Derom Bangun said here on Friday.

He said demand for CPO abroad this year was good, particularly in the European market.

"The good demand for CPO has boosted the export volumes and raised the CPO price," he added.

The CPO price in the world markt now was US$530 to US350Ul per ton while at home the price per kg was about Rp4,245.

Considering the fact that demand at home was also increasing, there was a possibility Indonesia`s CPO exports would not increase this year.

With good demand overseas, CPO exports should experince a boost and this year`s target of 11.3 million tons would hopefully be achieved, he added.

Indonesia`s CPO putput accounted for some 43 percent of world production totalling 36.5 million tons and Malaysia`s for some 43.3 percent, Astra Agro Lestari (AALI) director Julie Syaftari said recently.

The rest was contributed by Nigeria, Thailand, Colombia and other countries.

Julie said the world`s CPO production in 2006 was estimated at 36.5 million tons or an increase by 8 percent if compared with the figure in the previous year.

"Indonesia`s CPO production is predicted to increase by 12 percent this year to 15.7 million tons," Julie said adding that Malaysia`s production was estimated to increase by 6 percent to 15.8 million tons.

Malaysia`s CPO consumption was projected to increase by 17 percent and Indonesia`s by 6 percent.

In the first semester of 2006, AALI`s CPO sales reached 1.857 trillion or an increase by 17.6 percent compared with that in the previous year. The net profit it gained was recorded at 414.7 billion or an increase by 7.6 percent. (*)
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