JAKARTA (Dow Jones): Indonesia plans to increase exports of fatty acids toEuropean Union countries due to high consumption of the palm oilbyproduct, the Indonesian Oleochemical Manufacturers Association (Apolin), said Tuesday.

Kris Hadisubroto, Apolin's chairman, said Indonesia seeks to increaseexports to 300,000 metric tons a year from the current 50,000 tons perannum. Germany and the Netherlands are the main buyers of Indonesia'sfatty acids.

"European countries will become another potential market aside from ourtraditional markets like India and China," Hadisubroto said, adding thatdemand for fatty acids in European countries averaged 1.5 milliontons/year.

Fatty acids are used for producing nonfood products such as detergent andsoap.

Hadisubroto said Indonesia will expand the production capacity for fattyacids to 820,000 tons next year from 700,000 tons this year.

He added that Indonesia's oleochemical industry will also have anadditional 60,000 tons of output capacity for fatty alcohol. At present,the output capacity stands at 180,000 tons.

Fatty alcohol is a palm oil byproduct which is used as an ingredient insuch products as biodiesel.