04/12/2009 (Pakwatan), Nusa Dua - Indonesia, the world's top palm oil producer, is looking to increase exports to China and Pakistan, an industry official said, amid tougher competition next year as global vegetable oil supplies are expected to rise. More than half of Indonesia's palm oil exports are in the form of crude palm oil, while rival Malaysia sells higher value refined products, making the world's number two producer more efficient in the Chinese market.

"Our industry is getting more advanced and efficient, and gradually we can compete with Malaysia," Susanto, head of the marketing division at Indonesian Palm Oil Association (GAPKI), told Reuters in an interview. "Moreover, more and more Indonesian businessmen are building refiners in China, so that our exports to China can be increased," he added.

Indonesia shipped out 1.7 million tonnes of palm oil products to China, the world's top vegetable oil buyer, in 2008, compared to 5.4 million tonnes sent to India. As for Pakistan, Susanto said Indonesia had a chance to regain its lost market share if the two countries concluded ongoing talks on a free trade agreement (FTA), which will lower import duties on palm oil products.