Tuesday, 24 November 2009

RI replaces Malaysia as world`s biggest CPO producer

Tuesday, November 24, 2009

Bogor, W Java (ANTARA News) - Indonesia has developed into the world`s biggest crude palm oil (CPO) producer, replacing Malaysia, Amin Tamin Subandrio, deputy to the research and technology minister said here on Tuesday.

He said Indonesia had since last year replaced Malaysia as the world`s biggest CPO producer. Now Indonesia`s CPO production had reached 19.2 million tons per annum, exceeding Malaysia`s 17.8 million tons.

Subandrio said the fact was "interesting" because Indonesia was able to become the number one producer two years sooner than previously projected.

"It turns out that we achieved the target in 2008," he said.

In the meantime, despite price fluctuations in the world market, the volumes of CPO exports rose to 12.5 million tons in 2008 with plantations covering 8.127 million hectares.

Indonesia`s plantation productivity reaches 3.7 million tons per hectare, the deputy minister said.

The increase in national CPO production was having an impact on national economic growth. The oil palm industry now accounted for 4.5 percent of the national gross domestic product with its foreign exchange contribution to national income amounting to Rp3.5 billion.

"Palm oil industries play significant roles in the national economy. This industry influence much economic growth and people`s welfare," he added.(*)