TEMPO Interactive, Jakarta:Crude palm oil production this year is predicted to rise to 20,2 million tons compared to 18,8 million tons in 2008. However, according to Indonesian Crude Palm Oil Businessmen Association chairman, Derom Bangun, this year’s increase in production was a result of trees planted three years ago.
From the 20,2 million ton production, domestic consumption is expected to be around 4,5 million tons, said Derom. “The rest will be exported,” he told Tempo yesterday. Meanwhile, this year’s crude palm oil prices are predicted to range around US$ 500 - 600 per ton, based on the Rotterdam market. In Indonesia, palm oil is Rp 5.500-6.500 per kilogram. Derom thinks the prices are still profitable although they rose to US$ 1.300 per ton in 2008.