Government urged to reduce export of CPO

Padang, West Sumatera (Antara News) - The Indonesian Government was urged to take an important political decision by reducing export of crude palm oil (CPO) in order to encourage development acceleration and enlarge local processing industries so that it could absorb millions of unemployment people.

"We should dare to reduce the CPO export as it has many derivatives , and these industries are able to absorb manpowers in huge number," said Fauzi Bahar, Mayor of Padang, West Sumatera province, Saturday.

Previously, President Susilo Bambang Yudhoyono in his official visit to the province, Sept 21-22, 2006, asked to all provincial administration across Indonesia to absorb at least 10.1 million unemployment people this year.

Fauzi said that Indonesia each year exported 13 to 15 million tons of CPO to many countries.

Therefore, the local processing industries of CPO should be enlarged as it could produce at least 70 derivatives commodities started from shampoo, cooking oil, etcetera.

He suggested the government to reduce the CPO export in 2007 to be 75 percent of the 13 to 15 million tons CPO per year.

The figure could be reduce furthermore in 2008 to 60 percents, so that the domestic supply would be 40 percents.

Export CPO of the West Sumatera province in period of January-July 2006 has reached 1.0 million ton and the figure was expected to be 1.8 million tons up to December 2006.

"As comparison, in 2004 , West Sumatera`s CPO export is only 580,000 tons," he said. (*)
_________________________ Indonesian Business and Investment News Aggregator