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INDONESIA'S CRUDE PALM OIL PRODUCTION: estimated at 20 million tons in 2009

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Indonesia’s crude palm oil production in 2009 is estimated to total 20 million tons, of which 4.5 million to 5 million tons will be consumed at home and the rest exported, a CPO businessman said.

Derom Bangun, chairman of the Indonesian Crude Palm Oil Council (DMSI) and adviser of the Indonesian Crude Palm Oil Businesses Association (Gapki), said demand for CPO at home could increase to 6 million to 6.6 million tons.

“With the increase in domestic demand, exports could be reduced so that it would also reduce pressure on the world market,” he said after the launch of the International Coference & Exhibition on Palm Oil (ICE-PO 2009) here on Wednesday.

He said Indonesia’s CPO exports to Europe were being hampered by a regulation the European Union had adopted with regard to the impact of fossil and vegetable fuel oil gases on the greenhouse effect.

Bangun said that at present, crude palm oil industry was the country`s second biggest foreign exchange earner after the oil and gas sector, which provided employment for at least four million people.

On the occasion, Bangun also said that Indonesia`s biodiesel production reached 27 million tons. 

If the amount of CPO used in the production was increased by 5 percent, it would need in the production a total of 1.35 tons of CPO annually, he said.

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