21/09/05 JAKARTA, (Asia Pulse) - Demand for crude palm oil (CPO) in somecountries had increased to 2 million tons each year because the commodityhad been used as alternative energy -- biodiesel and biofuel -- which arefriendly to the environment, Derom Bangun, general chairman of theIndonesian Palm Oil Businessmen's Association (GAPKI) said here onTuesday.

"CPO consumption in the world would continue to increase in the futurebecause a US regulation enforces a label of trans fatty acid (TFA) contentin food as of January 1, 2006 because the substance has been suspected toalso cause heart disorders," Derom said on the sidelines of a workshop onprevention and eradication of forest fires.Under the regulation, according to him, US food producers who usually usedsoybean, cannola and sunflower oil had been hydrogenized as raw materialwould switch to CPO.

Indonesia has been predicted to export 9.6 million tons of CPO this year,or raise from 8.6 million tons last year. If combined with palm core oilexport, the country will earn US$4.5 billion.

China, India and the Netherlands are traditional markets of Indonesia'sCPO. Malaysia also exports CPO to India which was predicted to produce 5.5million tons of CPO per year while the country needs 11 million tons.

Derom said the price of CPO next year would reach US$360 per ton FOB.

"The price is the same as this year's, but lower than last year's US$430per ton FOB," he added.