Production is estimated to reach only 26.7 million or 27 million tons this year as a result of the impact of extreme climate, chairman of the Indonesian Palm Oil Council (DMSI) Derom Bangun said here on Thursday.
Extreme climate caused a shift in harvest time and reduce productivity, Bangun said.
He said normally grand harvest took place in September, but this year production in September this year was relatively small.
"The shortfall in production growing only slightly from 25.5 million tons last year gives us reason for concern, as normally production grows 9 percent per year," he said.
The concern is greater with regulatory restriction on expansion of plantations amid falling price, he added.
"Whereas, CPO and derivatives are the country`s major export earners outside the oil and gas sector," he said.