VP: Indonesia to be world's biggest palm oil producer in 2008

Denpasar, Bali (Antara News) - Vice President M. Jusuf Kalla predicted on Thursday Indonesia will overtake Malaysia as the world`s biggest palm oil producer in 2008.

"In 2008, our palm oil production should be number one," Kalla said when opening a national seminar on oil palm here.

According to him, Indonesia at present is the world`s second palm oil producer after neighboring Malaysia whose land territory is smaller than Indonesia`s.

"Since our land territory is larger than that of Malaysia, I believe that in 2008 we will become the world`s number one palm oil producer," he asserted.

He said 85 percent of the world`s palm oil production originates from Indonesia and Malaysia. To increase the production, the Indonesian government is planning to launch a program to revitalize oil palm, cacao and rubber plantations.

The project is expected to create 1 million hectares of plantations to support the palm oil-based bioenergy program.

"Palm oil is a source of energy and food so demand for the commodity will continue to increase due to the rising economic and population growth," he said. (*)
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