JAKARTA, July 16 Asia Pulse - Indonesia is expecting to export up to 10million tons of palm oil a year for the next five to eight years' time orhigher than the present level of four million tons a year."The target is achievable if people or local administrations do not hinderthe palm oil plantation business," Agriculture Minister Bungaran Saragihsaid after opening a seminar on the country's palm oil business on Monday.He said palm oil business remained profitable and prospective andtherefore he was optimistic the target would be met.National exports of palm oil in 2001 reached 4.9 million tons worth US$1.1billion and are estimated to increase to 5.4 million tons worth US$1.5billion this year, according to the general chairman of the IndonesianAssociation of Palm Oil Producers, Derom Bangun.Exports go to 96 countries with India, China, Spain and the Netherlandsbeing the largest importers.He said China's imports of palm oil at present totalled 2.4 million tonsand 700,000 tons of them came from Indonesia. Exports of the commodity toIndia reached 1.6 million tons in 2000 and 1.5 million tons in 2001, hesaid."For 2002 exports to India are expected to remain as much as last year,"he said.Darom said national palm oil production reached 8.3 million tons in 2001while domestic demand was only recorded at 3.5 million tons so that theexports would not affect domestic supply."In 2002, production is expected to increase by around eight per cent tonine million tons," he said.He believes the target would be reached if local administrators wouldinvite investors to develop plantations in their respected regions.Darom said he had urged the government to eradicate export tax for palmoil, which now stands at three per cent to increase the commodity'scompetitiveness.He said the move was needed as palm oil now had to compete with oil fromsoybeans, sunflower and canola."In view of that we hope the tax will have been wiped out by 2003," hesaid.In exchange for the loss of state income from the tax he suggested thatthe government increase the income tax of palm oil industries."If production and exports increase income tax will also increase," hesaid.

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