JAKARTA, May 13 Asia Pulse - Indonesia is set to earn US$2.4 billion fromthe export of crude palm oil (CPO) this year, up 12 per cent year-on-year,according to the association of palm oil companies (Gapki).
Gapki chairman Derom Bangun said yesterday the increase in export earningswill follow an expected 8 per cent rise in production to 9.6 million tonsthis year.
Bangun estimated around 6.5 million tons of the production this year willbe exported.
He said demand for Indonesian CPO is increasing in Europe, the Middle Eastand other regions and the priced is picking up after sliding over the pastmonth.
He said the increase in demand for CPO also followed last week'sannouncement by India, which has a deficit of 1 million tons in CPOsupply, slashing the CPO import duty.
Recently Indonesia and Russia signed a counter trade agreement under whichIndonesia is to export commodities including CPO in exchange of Russianjet fighter Sukhoi and other military hardware.