Pontianak, W. Kalimantan (ANTARA News) - The existence of a trade war is slowly eroding the developmental prospects of the oil palm industry in Indonesia, the head of the West Kalimantan branch of Sinar Mas Group, Susanto, said.

"Currently many issues are deliberately being spread to undermine development of oil palm plantations in Indonesia, thus our society should not easily fall for issues that are not necessarily true," Susanto said when Antara contacted him here on Wednesday.

He said a trade war which usually begins with the dissemination of false issues once also happened over Indonesian sugar.

Formerly, Indonesia was one of the world largest sugar producers, but now it has become a net importer of sugar because it lost in the trade war.

"Do we don`t wish the same thing to happen to the country`s oil palm industry which has made Indonesia the world`s number one CPO (crude palm oil) exporter," he said.

Based on oilworld data, Indonesia has since 2006 become the world`s largest crude palm oil exporter surpassing Malaysia.

In 2005, Indonesia`s palm oil production was still 14 million tons per year, or less than Malaysia`s 15 million tons per year.

In 2006 Indonesia`s palm oil production increased to 16.5 million tons per year, while Malaysian palm oil production went down, he said.

Then in 2008, Malaysia`s production reached 18.5 million tons and Indonesia`s 20 million tons which rose to 21 million tons in 2009.

Today many issues were being spread deliberately to suppress development of oil palm plantations in Indonesia, because it`s our society do not easily fall for issues that do not necessarily true

Sinar Mas group in its oil palm development program in Kapuas Hulu district had assessed the land that has a high conservation value before starting its operations. (*)

Editor: Kunto Wibisono
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