INDONESIA, MALAYSIA RAISE RUBBER AND CPO PRICES

Kuala Lumpur, Feb 26 (ANTARA) - Indonesia and Malaysia were discussing joint efforts to strengthen the prices of commodities, especially palm oil and rubber, by market stock management and lowering supplies under a plant rejuvenation program.

Indonesia's Agriculture Minister Anton Apriyantono and Malaysia's Plantation and Commodity Minister Peter Chin Fah Kui held a bilateral meeting on the sidelines of a D-8 ministerial meeting on food security in Kuala Lumpur Wednesday night.
The two countries made a joint effort to raise the prices of crude palm oil (CPO) and rubber hit by the global economic crisis as the two countries controlled 85 percent of the world's CPO output and 40 percent of the world's natural rubber production.
But the two countries expressed concern over the non-tariff barriers to CPO exports imposed by the importing countries, such as the European Union and the United States. Germany, for instance, has issued new conditions for CPO imports.
Indonesia and Malaysia expressed disappointment over the development although many efforts have been made by the relevant industries to produce CPO following the roundtable on sustainable palm oil (RSPO).
Right now, an Indonesian and four Malaysian CPO companies are holders of RSPO certificates.
Minister Anton Apriyantono and Minister Peter Chin agreed to make joint efforts in the development of CPO and natural rubber.
With regard to CPO, the two countries will replace palm oil plants older than 25 years.
They also agreed to carry out a biofuel program, in which Malaysia had already mixed five percent of CPO or methyl ester with fossil fuel oil starting in February 2009.
Indonesia, meanwhile, had already mixed at least one percent of CPO for fuel oil for public transportation and at least 2.5 percent of mixed oil for industrial consumption and the commercial sector.
The two countries also agreed to raise domestic demand by increasing the activities of the upstream industry, and intensify promotions for mutual investment in the two countries.
Indonesia and Malaysia will also make joint approaches to the main countries especially with regard to methyl ester-based CPO in view of the non-tariff barrier to biofuel exports.
The two countries will also establish cooperation and continue meeting demands from the European Union for renewable energy, especially CPO discriminatioin.
"Malaysia and Indonesia will continue promoting CPO to the legislators in the United States in 2009, as last year we have also been engaged in joint promotions in Europe," Anton said.