The increase is relatively moderate with limited expansion of plantation in the past several years, deputy chairman of the Derom Bangun said.
Lands for expansion are no longer easily available with the government policy, Derom said here on Wednesday.
The government has ruled moratorium in clearing forests for new plantations, he cited.
He hopes the limited increase in production would result in an increase in the price of the commodity.
He said currently the price of CPO averages US$1,000 per tons, but in 2013 the price is expected to fall to US$850-US$900 per ton with weak demand from crisis hit Europe and the United States.
Demands from China and India two largest single importing countries are also predicted to decline in 2013, he said.