Indonesia’s Palm Oil Production Expected to Rise in 2006

Indonesia’s palm oil production expected to rise in 2006

JAKARTA, March 6 (Xinhua) — Indonesia’s palm oil production is expected to rise by 1.1 million tons to 14.7 million tons in 2006 from the previous year, the industry association said Monday.

Derom Bangun, chairman of the Indonesian Palm Oil Producers Association (Gapki), said expansion of palm plantation in the last few years would drive up production.

Parts of the new plantations have begun to bear fruits, he was quoted by Antara news agency as saying in the north Sumatra capital of Medan.

Indonesia’s palm oil export is estimated at 11.3 million tons this year, he said.

International demand for palm oil is on the rise to produce bio diesel fuel, he said.

Derom predicted global palm oil price would increase to the average 460 U.S. dollars per ton this year from 420 dollars in 2005.