JAKARTA, Nov 29 (Reuters) - Indonesia is seen producing around 8 milliontonnes of crude palm oil in 2001, far above its earlier forecast, due tonew plantations starting to yield their crop, a senior industry officialsaid on Thursday.The world's second largest palm oil producer had earlier forecastproduction at 7.3 million tonnes this year.Nafis Daulay, Chairman of the Indonesian Edible Oils Association(AIMMI) said Indonesia had exported 1.53 million tonnes of crude palm oil(CPO) in the first ten months of this year, while exports of its byproducts in CPO equivalent reached 2.18 million tonnes.Around 2.8 million tonnes of CPO was sold in the domestic market duringthe same period, he said."Output in November and December is seen at 1.4 million at least, sothe total production will reach more than 8 million tonnes," Daulay toldReuters.The Indonesian Palm Oil Producers Association (GAPKI) earlier forecastthe country to produce 7.3 million tonnes in 2001, an increase from around6.5 million tonnes a year earlier.But while he forecast a rise in production, Daulay said the total for2001 would not be as high as 8.5 million tonnes, a figure expected by manyregional palm oil traders.

NEW PLANTATIONSDaulay said the increased production forecast was due to newplantations coming on line throughout Indonesia."Many plantations cultivated before 1997 have started to bear fruit,"he said.Oil palm trees need at least three years before they can be harvested."Besides, there is a better than expected environment to grow palm oil,such as less looting of fresh fruit bunches," Daulay added.Looters have often targeted fresh oil palm bunches over the past fouryears as Indonesia's economy was hit hard by Asia's 1997 financial crisis,but security has been increased around the plantations to combat suchstealing.Daulay said exports of CPO and its by-products for the whole of 2001were seen at 4.5 to 4.7 million tonnes in CPO equivalent, an increase from4.1 million tonnes in 2000 supported by higher local output and betterinternational prices of palm oil."Exports are rising sharply since October because of good demand fromoverseas," he said.Indonesia exports more than 40 percent of its palm oil, mostly in theform of CPO, to India. CPO accounts for more than 50 percent ofIndonesia's palm oil exports.Domestic consumption of CPO, a raw material for palm olein or cookingoil is also seen rising to 3.15 million tonnes in 2001 from around 2.5million tonnes in 2000, but far below its target of 3.7 million tonnes,Daulay said."It's because people's purchasing power is not as good as expected," headded.Indonesia's total consumption of edible oils in 2000 is seen at 2.1million tonnes, around 1.68 million tonnes are palm olein and 420,000tonnes are coconut oil, Daulay said.