Sun, 28 Feb 2010

Palangkaraya (ANTARA News) - Central Kalimantan expects its crude palm oil production this year to reach 2.5 million tons with big private plantations having increased their cultivated areas.

"Several plantations are starting to harvest this year to increase annual production by around 400,000 tons from last year," the chairman of the provincial chapter of the Association of Indonesian Plantations, Teguh Patriawan, said here on Saturday.

Last year the province produced 2.13 million tons of CPO.

Teguh believed the province could produce up to around nine million tons of CPO a year if concession areas for oil palm plantations in the region reach three million hectares of plantations and produce harvests.

Right now of around three million hectares of concession areas 740 hectares have been planted and produced fruits with an optimal production of only 2.5 million tons of CPO.

Most of the province`s CPO have marketed at home and only around 20 percent of it have been shipped to Malaysia, Singapore and Europe.

To meet future production hike Teguh hoped the regional government could immediately prepare supporting infrastructure such as roads and an export-import port.

He said many plantation businessmen had urged for the realization of a sea port to boost oil palm plantation growth in the region.

He said they even were ready to pay retribution to the regional government for it.

He said the price of CPO for exports from the province is higher than that of Sumatra because the product has to be taken to Belawan or Dumai first which is costly before being exported.(*)