Tue, 05 Apr 2011

TEMPO Interactive, Jakarta:The government will change its palm oil industry export strategy, from only exporting raw material to exporting processed products. “In the future, 60-70 percent will be exported in its processed form,” said Coordinating Minister for the Economy, Hatta Rajasa, yesterday.

Meanwhile, from a total export of US$ 157.5 billion last year, 10 percent was from the export of crude palm oil (CPO). Current CPO exports amount to 19.5 million tons per year, or 65 percent of the industry’s exports.

At the same time as the downstreaming of palm industries, the government hopes that raw palm export this year will decrease. The Industry Minister Muhammad Suleman Hidayat is optimistic that crude palm exports can decrease to around 10 percent compared to last year export volume.