China may increase CPO imports from Indonesia

JAKARTA (JP): The Ministry of Industry and Trade said here on Saturday that the Chinese government gave a positive response to his request to increase crude palm oil (CPO) imports.

"The Chinese government has hinted that China would increase CPO imports from Indonesia and Malaysia by up to 500,000 tons" Luhut told reporters on the sidelines of a visit he made to Inacraft Expo 2001 late last week.

Luhut denied press reports that the Chinese government had rejected a request to boost its CPO imports from two of the world's largest CPO producers, Malaysia and Indonesia.

Luhut and Malaysian Primary Industries Minister Lim Keng Yaik, visited China last week to lobby the Chinese government to increase CPO imports from both countries.

The visit was a part of joint action initiative conducted by both Indonesia and Malaysia to prop up battered CPO prices.

Luhut said that Indonesia would only obtain about 20 percent of China's additional CPO imports, while the greater slice would go to Malaysia.

"Indonesia's crude palm oil market share in China is very small if it is compared with Malaysia's," Luhut said. "Although our market share is much smaller, we have asked Malaysia to raise Indonesia's portion to 40 percent," he added.

Luhut said that the Chinese government also agreed to build timber plants in Irian Jaya and a fish-processing plant in Sorong, Irian Jaya.(03)