"We are targeting reducing in stages crude palm oil exports now still at 60 to 65 percent to only 40 percent," Coordinating Minister for Economic Affairs Hatta Rajasa said at the opening of a palm oil downstream industry in Bekasi, West Java, on Wednesday.
He said he hoped later around 60 percent of palm oil exports would be in the form of processed products or derivatives.
He said unlike China, Indonesia has competitive superiority in the field of agriculture such as in the oil palm plantation which is only fit to be done in tropical countries like Indonesia. "China cannot develop oil palm plantations," he said.
Industry Minister MS Hidayat meanwhile said on the occasion Indonesia`s downstream palm oil production in 2010 was recorded at around 22 million tons and was expected to reach 43 million tons within ten years.
He admitted 65 percent of exports was still in crude form and therefore in ten years it was hoped the figure would change so that the country`s palm oil industries could enjoy more added value.
"A lot or tens of derivatives may be produced from palm oil," he said.
He said he had already discussed the issue with various parties and businessmen had also agreed to shift towards the direction in stages.
He said among the challenges being faced was time to be needed to make a palm oil derivative product to be well known at home as well as abroad.
(T.M040/Uu.H-YH/HAJM/S012)
Editor: Priyambodo RH
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