South Kalimantan govt encourages palm oil industry

Banjarmasin, South Kalimantan 2/6 (AntaranewsKalsel) - South Kalimantan Provincial Government encourages the growth of palm oil industry to improve regional economic growth and community welfare.

Head of Domestic Trade Sector of South Kalimantan Trade Agency Gusti Yasni Iqbal here on Friday said the agency is continuously encourages the growth of crude palm oil (CPO) and its derivatives as an effort to increase farmers' income and encourage regional economic growth.

Through the growth of the processing industry, said Gusti, it is expected that exports will no longer be raw materials, but finished goods to increase added value of the region.

The effort is done, he added, following up the circular letter of the trade ministry that the local no longer export raw materials, but must be finished or semi-finished material to foster better economic climate.

"Technically, to grow the industry and the steps to be taken are in the relevant agencies. The Trade Agency only helps and implements the ministry's provisions on restrictions on the export of raw goods," he said.

Currently, added Gusti, CPO price is rising again in international market from the previous price of 680 USD per ton to 740 USD per ton. The increase is also followed by the number of CPO export demand which increased 62 percent.

The increase in the price of cpo, he said, is not expected to make investors complacent to develop industries in the region, such as cooking oil industry, beauty industry, soap and others.