RI may export CPO to China

Indonesia will supply at least 30 percent of China's quota of 2.4 million tons of crude palm oil (CPO) this year, said chairman of the Indonesian Palm Oil Industries Group (Gapki) Derom Bangun on Monday.

"In 2002, the Chinese Government has issued a quota of 2.4 million tons of CPO. it is estimated that Indonesia will have the opportunity to export 720,000 tons of CPO," Bangun said as quoted by Antara in Medan, North Sumatra.

China's import of CPO is estimated to sharply increase from last fiscal year, which recorded 1.4 million tons, he said.

"The increasing volume of the CPO quota in China is estimated to boost the commodity's price in the international market. The price of CPO currently stands at US$325 per ton," he said.

In 2001, Indonesia produced eight million tons of CPO, with 450,000 tons entering China's market.

Bangun predicts that Malaysia will dominate China's CPO quota this year.

Malaysia is the biggest CPO producer in the world and exported 60 per cent of the 1.4 million tons of China's CPO quota in 2001, he said.

He said the Chinese Government's increased CPO quota was a good opportunity for Indonesia to increase its export volume.

Meanwhile, India will increase its import duty for CPO from 45 to 65 per cent.

"Of course, it will influence the price of the commodity in the local market," Bangun said. --Antara