Amadeusz Juskowiak

Indonesian palm oil output expected to rise

Indonesias palm oil output is expected to rise and exports to increase the US Embassy said in its annual report on Indonesias agriculture sector

The Indonesian government said crude palm oil CPO output is expected to rise to 156 mln tonnes in 1987 and 211 mln in 1988 up from a projected 145 mln tonnes in 1986 and 126 mln in 1985

The 1986 projection of 145 mln tonnes is up from a provisional figure of 13 mln tonnes

A US Embassy assessment puts 1987 output at 145 mln tonnes against 135 mln in 1986 and 1208 mln in 1985

More realistic estimates indicate that 1988 production will be between 15 and 16 mln tonnes the report said

The report said the abolition of the five pct CPO export tax the devaluation of the rupiah in September 1986 and higher international palm oil prices should lead to a modest increase in exports this year

Exports are forecast to rise to 720000 tonnes against 695000 tonnes in 1986 the report added