GOVT TO ENCOURAGE CPO, CACAO EXPORTS : TRADE MINISTER

Jakarta, Aug 11 (ANTARA) - The government is encouraging the export of the country's premier commodities such as crude palm oil (CPO) and cacao in order to increase their export volumes following the recent decline in the world oil price which is also dragging down the prices of certain other commodities in the world market, Trade Minister Mari Pangestu said.

"I think, the price of rubber will not be affected much but the CPO price fell to below 800 dollars per ton from 1,100 dollars per ton. But this problem can be overcome by increasing the export volume," the minister said here on Monday.

She said the fall in the world oil price from US$140 to US$115 per barrel had affected the price of CPO. But the impact of the oil price decline on other commodities was not significant.

"The CPI price fluctuated sharply but prices of other commodities did not change too much as their export growth remained high, namely about 38 percent" the minister said.

She said growth in non-oil commodity exports in the second semester of 2008 was not likely to be as good as in the first semester when growth was recorded at over 20 percent. But she said she still remained optimistic that export growth would still reach a range between 12 and 14 percent.