"We hope the price will increase to more than US$1,000 after the US$900 per metric ton," he stated during a visit to the Antara Makassar bureau here on Friday.
He noted that Indonesia has been the worlds largest palm oil producer in the last ten years producing up to 27 tons, beating Malaysia that produced 18.9 tons.
The worlds palm oil consumption meanwhile has increased by seven percent each year, he explained.
"This year the production is expected to reach 29 tons. We have observed that traditional markets have already developed and therefore there is an opportunity to develop East Europe as a new market for CPO distribution," he explained.
He added that the CPO market has spread to China, India and the European Union covering 27 countries as well as Pakistan.
There are prospects of expansion in East Europe and other countries as well, he added.
Although negative campaigns against palm oil has continued to curb palm oil productivity rate in various countries including Indonesia, efforts have been made to promote other kinds of vegetable oil, Tofan stated, adding that he was optimistic about palm oil remaining at the current position.
CPO has so far been the biggest non-oil/gas contributor to Indonesias foreign exchange income with its contribution reaching around US$21 billion, he explained.
This will certainly give good prospects as well as challenges for the CPO industry in the country, he added.
"Indonesias palm oil is still the best, followed by that of Malaysia. The palm oil industry will continue to provide employment up to five million people to develop the countrys economy," he emphasized.
With regard to the negative campaigns, he noted, "all stakeholders including the government, the parliament, the society and non-government organizations must be united in view of the income contribution from palm oil. Supports from all parties especially with regard to land, laws, government regulations and bylaws are important. They must protect and not hinder. It is in this area that has made Malaysia better than us."
Reporting by Darwin Fatir
(H-YH/INE/a014)
EDITED BY INE
(KR-BSR/A014)
Editor: Jafar M Sidik
Copyright © ANTARA 2014
