02/02/2013 (Bernama) - The Indonesian government hopes 70 percent of its crude palm oil production could be processed at home, Indonesia's ANTARA news agency reported.

"The target is 65 to 70 percent of production could be processed at home this year," the director general of agro-industry, Benny Wachjudi, said here on Thursday.

He said investment in the CPO processing industry has kept coming to increase refinery capacity.

"Several years ago the refinery capacity only reached 50 percent but now it has jumped to 75-80 percent," he said.

Wachjudi said that Indonesia would consistently implement a progressive export tax system for plantation commodities to encourage development of downstream industries.

He said following the implementation of the system development of CPO downstream industries has risen and exports of CPO products have also increased.

In 2011, Indonesia`s exports of CPO derivative products were recorded at 9,026 tonnes while CPO at 7,646 tonnes but in 2012 they respectively rose to 10,964 tonnes and 5,592 tonnes, he said.