REPUBLIKA.CO.ID, PALEMBANG -- The South Sumatra plantation service said the price of crude palm oil (CPO) in the province began to rise reaching Rp 7,652 per kilogram on Wednesday, February 18, up from Rp 7,558 per kg a week earlier.

Head of the processing and marketing division of the plantation service Benyamin said the price hike followed the trend in international market. "The price is set based on an agreement in a routine meeting between the plantation service and big CPO producers in the province," Benyamin said on Wednesday.

He said CPO price rise was followed with an increase in the price of fresh fruit bunches from Rp 1,386 per kg to Rp 1,405 per kg.

CPO production from South Sumatra is partly exported and the rest for domestic consumption. In South Sumatra, there are a number of processing factories producing cooking oil from CPO. Cooking oil is produced in bulk and packaging.

Benyamin said South Sumatra was a plantation center in the country for oil palm and rubber plantations.

Oil palm plantations are found mainly in the regencies of Muaraenim, Lahat, Musibanyuasin, Banyuasin, Ogan Komering Ilir, Ogan Komering Ulu, and Musirawas totaling 700,000 hectares.

Indonesia is the world's largest producer of palm oil and the second largest for natural rubber.

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