Jakarta (ANTARA News) - The Indonesian Palm Oil Producers Association (Gapki) predicts Indonesia`s palm oil production in 2012 will reach 25 million tons.

Gapki executive director Fadhil Hasan said here on Wednesday the 2012 production projection represented an increase of 5.4 percent or 1.5 million tons from the previous year`s production recorded at 23.5 million tons.

"The national palm oil industry will grow this year in terms of production, plantation area, exports and price," he said when presenting the 2012 palm oil industry outlook.

The total area of oil palm plantations in 2012 would reach 8.2 million hectares while exports were projected to reach 17.5 million tons to 18 million tons.

The price of CPO in 2012 was predicted to range between US$1,000 and US$1,200 per ton.

"The prospects of the palm oil industry will be better if all stakeholders work together to overcome various problems faced by the industry," he said.

He said despite all the problems being faced by businessmen in the sector he would continue encouraging the development and expansion of palm oil industries in the country.

He said palm oil industries were playing a very important role in national development owing to their contribution in the form of export proceeds, work force absorption, poverty alleviation, development of remote regions and utilization of idle lands.

Gapki`s head of marketing and foreign affairs Susanto said palm oil production and exports in 2011 were up from the previous year.

In 2011 CPO production was recorded at 23.5 million tons and around 16.6 million tons were exported. CPO production in 2010 meanwhile was recorded at only around 22 million tons and only 15.6 million tons were exported.

Domestic palm oil consumption in 2011 also rose to between 8.0 million tons and 6.2 million tons from 5.5 million tons in 2010.

"This year`s domestic CPO consumption is predicted to increase slightly by around 6 million to 6.5 million tons," he said.

He said domestic CPO consumption had bcome saturated so that there was a surplus that had to be exported.

Editor: Priyambodo RH
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