12/05/2009 (Alibaba), Jakarta - Indonesian plantation firm, PT Perusahaan Perkebunan London Sumatra Tbk <LSIP.JK>, said on Tuesday it expects palm oil production to increase by around a fifth this year as some of its palm oil trees mature.

The firm plans to produce 400,000 tonnes of crude palm oil this year, up from 340,000 tonnes in 2008, president director Benny Tjoeng said.

London Sumatra has 133,000 hectares (328,600 acres) of palm oil plantation, out of which about 83 percent, or 111,000 hectares, have started production.

"This year we plan to plant about 8,000 hectares. We are also in the process of getting permits to develop our land bank," Tjoeng said, adding it had a land bank of 80,000 hectares.

The company so far had no plan to buy more land.

"Many companies had offered to sell their land because of low crude palm oil prices and difficultly getting bank loans," Tjoeng said.

"We already have a land bank but if there's an opportunity and the price is good, we will look at it," he said.

London Sumatra is controlled by PT Indofood Sukses Makmur Tbk <INDF.JK>, the world's largest instant noodle maker.

The firm's shares closed down 2.46 percent to 5,950 rupiah on Tuesday, while the broader market <.JKSE> eased 0.2 percent.