29/11/05 (Thai Press Reports) -Indonesia, the largest country in Southeast Asia, is likely to surpass Malaysia as the world's biggest palm oil producer.

Indonesia's cultivable area is six times higher than Malaysia's, including 5.2 million ha of palm-growing acreage compared to 3.9 million ha in Malaysia. The two southeast Asian nations together contribute 80 percent of world palm oil production.

Indonesia has planned to increase the area under cultivation of oil palm, including over 1 million ha of cultivable land on Kalimanta island, as part of a poverty reduction plan.

The plan aims to help local economic development and improve social welfare, Agriculture Minister Anton Apriantono said, adding that the government is committed to supporting local and foreign investors wishing to take part in the project.

Palm oil is considered a potential growth commodity in the world market. Consumption of palm oil has risen an average of 10.6 percent per year over the past 25 years. Palm oil is used widely in food processing and industrial production. Scientists are currently studying production of palm-and diesel-oil mixes to replace petroleum for vehicles.