Indonesian palm oil output

Indonesian palm oil output

SINGAPORE (Reuter): Indonesia's palm oil output will more than double to 11.7 million tons by 2005 against about 5.6 million tons in 1997, the vice-chairman of the Indonesian Palm Oil Producers Association (GAPKI) said yesterday.

Derom Bangun said in a presentation to an edible oil markets conference in Singapore a sharp rise in the hectarage planted to palm will boost production. Plantings will increase to 4.6 million hectares in 2005 from 2.26 million hectares at present.

"It can be expected that the growth rate of oil palm plantations will be higher than 10 percent until the year 2003," he said.

Palm kernel production will also expand to 2.23 million tons by 2005 from the estimated 1.07 million tons in 1997 while palm kernel oil should reach 930,000 tons against 470,000 tons for this year, Bangun said.

Indonesia's annual coconut production, however, is seen remaining stagnant at around 2.7 million tons.