Monday July 18, 2005, 7:25 pm - JAKARTA, July 18 Asia Pulse - Indonesia'sproduction of crude palm oil (CPO) is forecast to reach 13.5 million tonsthis year, up from 12 million tons last year, the association of palm oilcompanies (Gapki) said.

Gapki chairman Derom Bangun said 9.6 million tons of the production willbe exported, up from 8.66 million tons last year.

He said the country's exports of CPO have continued to increasesignificantly since 2003 when exports totaled only 6.4 million tons.

The largest buyers of Indonesian CPO are India, followed by China andEurope.

The recent fall in the value of rupiah is expected boost exports of CPO,but Bangun said an increase in exports would not cause shortage indomestic supply with the significant increase in production.

(ANTARA)