JAKARTA, Aug 10 (Bernama) -- Indonesia wants to synergise with Malaysia to develop and market bio energy since both countries account for 90 percent of the world's palm oil output, says Indonesia's minister for state-owned enterprises, Sugiharto.

"Both countries are in a strong position to determine their offers to the world market," he said when commenting on President Susilo Bambang Yudhoyono's visit to Malaysia recently.

Sugiharto said palm oil would in future be not only an important edible commodity but a fuel source as well for the production of bio energy.

He said Malaysian and Singaporean entrepreneurs had shown strong interest to invest in the production of bio energy besides infrastructure facilities in Indonesia.

"We need to co-operate and benefit one another," he said.

Referring to efforts in Indonesia to encourage the use of alternative energy other than crude oil, Sugiharto said his country's master development plan was being crafted in a comprehensive manner.

"We are in the midst of discussions and nothing is final as we want the plan to cover all sources of energy," he told Antara news agency here.

Sugiharto said the Indonesian government also wanted the wider use of alternative energy to reduce the massive subsidies on kerosene.

-- BERNAMA