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NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

22/09/2004

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

Dow Jones

CATEGORY

HEADLINE

Indonesia's CPO Exports To India To Rise By Up To
21/09/04 - JAKARTA (Dow Jones)--Indonesia's PT Astra Agro Lestariexpects the country's crude palm oil exports to India to rise by 5%-10%following India's decision to lower CPO tariff values by $50 a metric ton,Bisnis Indonesia reported Tuesday.A downward revision in tariff values, from which import taxes arecalculated, has effectively lowered the import tax on CPO in India.Benny Tjoeng, vice president of Astra Agro Lestari, was quoted assaying the change will boost India's CPO consumption, as it will make thecommodity cheaper."The price of CPO in India (will decline) by $32 a ton" as a result ofthe move, he said.India has been the company's largest market for CPO, taking in around10,000 tons a month, Tjoeng said.However, he said the company has no plans to increase its exports toIndia, as it plans to keep domestic and export sales around the samelevel.Indonesia is the world's second largest CPO producer after Malaysia.The government has predicted production will reach 11 million tons thisyear, buoyed by a steady increase in plantation area to 4.6 millionhectares.According to the Indonesian Palm Oil Association, or Gapki, Indonesiaproduced 9.9 million tons of CPO in 2003, while the Indonesian governmentputs the figure at 10.6 million tons.