Jakarta, April 30 (Dow Jones) - Palm oil could make up 65% of the $167million in commodities Indonesia will export to Russia as part of acounter-trade agreement, Derom Bangun, chairman of the Indonesian Palm OilProducers' Association, or Gapki, said Wednesday.
Indonesia signed an agreement recently with Russia to buy four jetfighters and two helicopters in a deal valued at $192.9 million. TheIndonesian government will pay $26 million in cash, with the balance to bepaid by October 2004 in the form of 30 types of commodities.
Derom said producers were confident that palm oil will make up about 65%of the commodity shipment to Russia because of difficulties in exportingother commodities such as rubber, coffee and textiles.
The estimated 65% share represents a value of $108 million, or 300,000metric tons of palm oil.
"For this counter-trade, our association proposes to the government toscrap the export tax on palm oil," Derom told reporters after Gapki'sextraordinary general meeting.
Currently, the government levies an export tax of 3% on crude palm oil and1% on refined, bleached and deodorized palm olein.
Under the first shipment to Russia between May and July, about 42,000 tonsof palm oil will be exported, comprising 15,000 tons of CPO, 24,000 tonsof RBD palm olein and 3,000 tons of RBD stearin, Derom said.
Derom said producers are optimistic that 100,000 tons of palm oil will beexported to Russia by year-end.
In 2002, exports of palm oil to Russia totaled 13,044 tons, down from40,719 tons in 2001.