JAKARTA, 10/06 -Export of Indonesia`s crude palm oil (CPO) is predicted todecline by 20 percent in the fourth quarter of 2004, an industry executivesaid Tuesday.
The decline in export volume will be driven by soaring demand in domesticmarket during the religious holiday season, said Derom Bangun, chairman ofthe Association of Indonesian Palm Oil Producers (Gapki).
"The decline in (Indonesian) CPO export may lift CPO price from 430 USdollars per ton to 450 dollars per ton," Derom was quoted by Detikcomonline news service as saying.
He said Indonesia`s monthly CPO export stood at up to 650,000 tons. Thefull year export target has been set at 7.8 million tons, higher than theexport in 2003 at 6.38 million tons, he added.
Domestic CPO need reaches the average of 300,000 tons per month but duringthe Muslim holiday of Idul Fitri, the demand will increase to between400,000 tons and 450,000 tons, he said.
He estimated CPO output in 2004 will reach up to 11 million tons against9.9 million tons last year.