Jakarta (ANTARA News) - A researcher from Center for Southeast Asian Studies Kyoto University of Japan, Prof. Kosuke Mizuno, has said Indonesia should expand its palm oil downstream industry to increase the contribution of the palm oil sector to the countrys economy.
"Indonesia has the potential to control worlds crude palm oil industry. The material is abundantly available, human resources are also available. The direction is clear - going down stream," Prof Mizuno said here on Tuesday.
Prof Mizuno was a key speaker at a discussion on Policy in the Peat Management in Indonesia from the Ecology, Economic and Social aspects held at the campus of the University of Indonesia here.
He said palm oil industry is growing fast so is oil palm plantation in the country.
"But Indonesia is only an exporter of CPO, while processed products of palm oil are very limited such as soap, cosmetics,and margarine," he said.
He said oil palm plantations are expanding and demand for CPO is growing. CPO, therefore, has considerable contribution to the countrys economy.
However, Indonesian economic development could not rely only on exports of raw materials, he said, adding the raw materials need to be processed to be higher in selling value.
Source: ANTARA News