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NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

30/03/2001

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

NULL

CATEGORY

HEADLINE

INDONESIA SAYS NO PALM OIL FOR FUEL USE NEAR-TERM
INDONESIA SAYS NO PALM OIL FOR FUEL USE NEAR-TERM

JAKARTA, March 30 (Reuters) - Indonesia, the world's second largest palmoil producer, said it would not start using crude palm oil (CPO) as fuelfor the near future because it does not have the funds."We are not ready to burn CPO right now," Trade and Industry MinisterLuhut Pandjaitan told reporters late on Thursday."It's a good move to lift prices, but we don't have money right now.Malaysia understands our problem."Malaysian Primary Industry Minister Lim Keng Yaik said on Thursday thatstate power firm Tenaga Nasional Bhd had started burning CPO as fuel aspart of a government plan to reduce excess stocks in the country.The Malaysian government had asked Tenaga to burn 400,000 tonnes of CPOas fuel this year to erode a build up of excessive oil stocks inMalaysia.Lim said he hoped that by next month Tenaga would start burning atleast 50,000 tonnes of CPO a month.Traditional rivals Malaysia and Indonesia said last month they wouldband together to set up a world palm oil association to lift palm oilprices.Traders forecast Indonesia's 2001 production to reach 7.5 milliontonnes and Malaysia's to between 11.2 million and 11.6 million tonnes.