JAKARTA, May 3 – Indonesia will produce some 23 million tons of crude palm oil (CPO) in the coming five years if the plantation areas are expanded by two or three more million hectares, palm oil producers said here on Tuesday.
“In five years, Indonesia`s CPO production can reach 23 million tons per annum,” Ir Derom Bangun, chairman of the Indonesian Palm Oil Producers Association (GAPKI), said after a meeting with Vice President Jusuf Kalla.
He said CPO production could reach 23 million tons if plantation areas were planted with superior seeds with good support of fertilizer.
“At present, Indonesia`s CPO production is recorded at 14.7 million tons per annum, or about the quantity of Malaysia`s production,” Derom said.
The 14.7 million tons were produced from plantation areas which covered 4.2 million hectares, he said.
Indonesia`s whole palm oil plantation areas cover 5.2 million hectares, which consist of one million hectares with young plants.
“With that production level, Indonesia controls 40 percent of the world`s CPO need,” Dorem said.
He said that CPO producers who were affiliated to the GAPKI would this year open new plantation areas in order to meet the target of 23 million tons of CPO in the coming five years.
In related development, Indonesian Ambassador to Russia Susanto Pudjomartono said last week that Indonesia would supply 50,000 tons of crude palm oil (CPO) a month to a refining company to be set up in St Petersburg, Russia.
“Indonesia is ready to supply the raw material, so now the decision is in their hands,” he said at a meeting between 25 Russian businessmen and trade ministry officials.
Susanto said the two countries had agreed to double their bilateral trade to US$1 billion in the next two years.
“At present trade between Indonesia and Russia is recorded at US$500 million or lower than between Russia and Thailand or Vietnam. However, I am optimistic the target will be reached,” he said.
Source: soyatech.com May 04, 2006.