Printer Friendly

Indonesia and Malaysia to jointly deal with CPO embargo threat.

Indonesia and Malaysia have agreed to form a joint minister Group to deal with the palm oil embargo threat by the United States. Deputy agriculture minister Rusman Heriawan said the agriculture ministers of two countries would leave together for the United States to discuss that matter in their US counterpart. A regulation of US Environmental Protection Agency (EPA) bans the use of crude palm oil from Indonesian and Malaysian as feedstock for bio-fuel. CPO from the world's two largest palm oil producers is considered not up to EPA emission standards. Earlier US agriculture attache Dennis Voboril said the United States still is importing CPO from Indonesia as well as from Malaysia but not for use to feed bio-fuel factories. The Indonesian Palm Oil Commission accused the United States of being unfair saying the US regulation of Notice of Data Availability is discriminating against CPO. The regulation does not give equal treatment for CPO as for as vegetative oil produced by the United States, it said. The price of crude palm oil (CPO) was expected to increase on shrinking supply from in Malaysia despite negative sentiment with expected slowdown of Chinese economy, analysts said. Malaysian CPO stock has dropped to its lowest in six months in February after shrinking production in previous four months, said Ariana Nur Akbar from Monex Investindo Futures Malaysia is the world's second largest producer of CPO after Indonesia. China, one of the largest CPO market has revised down its economic growth target to 7.5% from 8%.
COPYRIGHT 2012 P.T. Data Consult, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2012 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:ECONOMIC NEWS IN BRIEF
Publication:Indonesian Commercial Newsletter
Geographic Code:9INDO
Date:May 1, 2012
Words:251
Previous Article:Bank Central Asia reports US$ 1.2 billion in net profit.
Next Article:Steel industry could grow by more than 10%.
Topics:

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters |