CPO exports to remain good until end of 2007, trade minister says

Jakarta (Antara News) - Trade Minister Mari Elka Pangestu said she believed Indonesia`s crude palm oil exports would still be good until the end of this year although there was a decline in volume and value in September.

"I think the performance still remains good because demand and price are still relatively high," she said.

According to the Central Bureau of Statistics (BPS) the value of the CPO exports in September dropped by around 30 percent from US$684.2 million in the month before to US$479.2 million causing the country`s export performance to decline 0.91 percent from US$9.6 billion to US$9.52 billion in August.

The drop in the value of CPO exports followed a decline in the volume of exports from 960,000 tons in August to 618,000 tons in September as a result of the government`s decision to raise levies on exports of CPO and its derivatives.

Minister Mari Elka Pangestu said the decline in September was a seasonal trend.

The price of CPO in Rotterdam rose to US$950 per ton on Friday from around US$815 per ton early in September, driven by a crude oil price hike that had reached UD$96 per barrel.

"The CPO price is affected by the price of crude oil," the minister said.

In view of that she said she was optimistic Indonesia`s CPO exports would remain good until the end of this year and could help boost non-oil exports.

"The value of exports from January to September is still up only around 50 percent and the year-on-year export performance is also up," she said.

According to the BPS, non-oil exports in September reached US$7.54 billion down 2.68 percent from the previous month but up 4.16 percent compared to September last year.

Cumulatively the value of the exports from January to September this year reached US$83.02 billion or rose by 12.88 percent from the same period last year while the value of its non-oil exports was up 17.47 percent to US$67.65 billion.

Sectorally the country`s exports of agricultural, industrial, mining and other products in the period respectively rose 11.25, 15.97 and 29.30 percent from the same period last year. (*)
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