ID :
14891
Mon, 08/04/2008 - 19:59
Auther :
Shortlink :
http://m.oananews.org//node/14891
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RI, MALAYSIA DISCUSSING CPO PRICING SCHEME
Sukabumi, W Java, Aug 4 (ANTARA) - Indonesia and Malaysia are holding talks to set up a crude palm oil (CPO) pricing scheme as means to prevent prices from fluctuating in the world market, Indonesian Minister of Agriculture Anton Apriantono said.
"We are studying several appropriate schemes for CPO prices that could be maintained so that prices in the world market will not fluctuate," Apriantono said on the sidelines of a meeting with Malaysian Plantations and Commodities Minister Datuk Peter Chin Fah Kui here on Monday.
Apriantono and Kui were visiting a Jatropha curcas plantation center in Pakuwon village, Sukabumi district, West Java.
He said the two countries would collaborate to set an appropriate price for their CPO as one of their primery export commodities.
Indonesia and Malaysia had earlier agreed that if the CPO price dropped they would increase their CPO consumption to produce biodiesel to a maximum of six million tons.
"This is intended to prevent over-supply and prices from falling. We will activate biodiesel factories in Malaysia and Indonesia so that supply and demand will remain balanced," Apriantono said.
In the menatime, Peter Chin Fah Kui said the fall in the CPO price in the world market to US$871 per ton had raised serious concern.
"The CPO price fell to US$871 per ton. It's a sharp fall. We are trying to stop the fall so that it will not harm us," the Malaysian minister said.
He said the diversion of six million tons of CPO to biodiesel factories would not affect cooking oil supply in the two countries because both nations accounted for about 85 percent of the world's total CPO production.
Malaysia's annual CPO production is recorded at 16 million tons while Indonesia's at 18 million tons.
"We do not need to import fuel oils anymore if we use the surplus of our CPO production for the production of biodiesel," he said.
Malaysia's biodiesel production capacity is at present recorded at 1.5 million tons per annum but its production is still about 100,000 tons because demand for CPO is far higher.
The fall of CPO price from US$1,200 per ton should serve as a signal for producers to increase their diesel production, he said.
Therefore, Indonesia and Malaysia agreed to increase the use of biodiesel at home.
"We are studying several appropriate schemes for CPO prices that could be maintained so that prices in the world market will not fluctuate," Apriantono said on the sidelines of a meeting with Malaysian Plantations and Commodities Minister Datuk Peter Chin Fah Kui here on Monday.
Apriantono and Kui were visiting a Jatropha curcas plantation center in Pakuwon village, Sukabumi district, West Java.
He said the two countries would collaborate to set an appropriate price for their CPO as one of their primery export commodities.
Indonesia and Malaysia had earlier agreed that if the CPO price dropped they would increase their CPO consumption to produce biodiesel to a maximum of six million tons.
"This is intended to prevent over-supply and prices from falling. We will activate biodiesel factories in Malaysia and Indonesia so that supply and demand will remain balanced," Apriantono said.
In the menatime, Peter Chin Fah Kui said the fall in the CPO price in the world market to US$871 per ton had raised serious concern.
"The CPO price fell to US$871 per ton. It's a sharp fall. We are trying to stop the fall so that it will not harm us," the Malaysian minister said.
He said the diversion of six million tons of CPO to biodiesel factories would not affect cooking oil supply in the two countries because both nations accounted for about 85 percent of the world's total CPO production.
Malaysia's annual CPO production is recorded at 16 million tons while Indonesia's at 18 million tons.
"We do not need to import fuel oils anymore if we use the surplus of our CPO production for the production of biodiesel," he said.
Malaysia's biodiesel production capacity is at present recorded at 1.5 million tons per annum but its production is still about 100,000 tons because demand for CPO is far higher.
The fall of CPO price from US$1,200 per ton should serve as a signal for producers to increase their diesel production, he said.
Therefore, Indonesia and Malaysia agreed to increase the use of biodiesel at home.
