Thu, 14 Oct 2010

Medan, North Sumatra (ANTARA News) - Indonesia needs to continue fighting the negative campaign on palmoil to maintain the price of crude palmoil which had increased to US$955 per metric ton, a palm oil producers` spokesman said.

"It is not impossible for the CPO price to reach US$1,000 or even higher if the negative campaign especially from Europe is not curbed and fought," Laksamana Adiyaksa, treasurer of the North Sumatra chapter of the Association of Indonesian Palmoil Producers (GAPKI), said here on Wednesday.

He admitted the present price hike was driven by increased demand from India as well as an imbalance between supply and demand.

He said if the campaign was not fought it was not impossible the price would drop again although it was believed that demand would continue to rise in line with decreasing production of other vegetable oils such as corn and soybean oils.

The deputy chairman of the Indonesia Palmoil Council, Derom Bangun, said the government`s moves to overcome the negative campaign had already been fruitful although they were not yet maximal.

Indeed the effort had to be continued through various ways including diplomacy so that the campaign could further decline.

Derom said CPO would continue to be the main contributor of foreign exchange income for the country and therefore it was reasonable for all actors to get involved in the fight.(*)