by Evalisa Siregar
Medan, N Sumatra, May 5 (Antara) - North Sumatra's crude palm oil exports in the first quarter of 2013 fell 10.73 percent to US$993.493 million from the same period a year earlier on declining prices in the global market.
"The first-quarter CPO exports reached US$1.112 billion. Foreign exchange earnings from CPO exports fell as CPO prices fluctuated with a downward trend," head of the North Sumatra provincial statistics office Suharno said here on Sunday.
The decline was recorded almost every month, with CPO exports falling 19.46 percent to US$269.689 million in March from US$334.712 million the month before, he said.
He said the drop in CPO exports was one of the causes of a 8.36 percent decline in the province's first-quarter exports to US$2.418 billion.
"As we know the export of CPO which belongs to the group of fat goods and animal/vegetable oils has given the biggest contribution to North Sumatra's foreign exchange earnings every year. So if the CPO exports fall the drop will have a direct impact on total foreign exchange earnings," he said.
Chairman of the North Sumatra chapter of the Indonesian Businessmen Association (Apindo) Parlindungan Purba said the protracted global crisis has led to low demand for various goods.
The CPO prices will continue to fluctuate as a result of low demand, chief of the Indonesian Palm Oil Council (DMSI) Derom Bangun said.
He predicted the CPO prices will increase to a level of above US$900 per metric ton from the current US$800-850 along with rising demand.(T.SYS/Suharto)
