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MEDAN: SOE Minister Mustafa Abubakar said the development of palm oil industrial cluster in North Sumatra, Riau and Kalimantan, in 2010 will hit the export of palm oil in the form of raw materials such as crude palm oil (CPO).

"With oil industrial cluster, CPO has been processed in the domestic export value grew so expensive," he said in Medan today.

He spoke on the sidelines of a review into the Industrial Park Sei Mangkei (KISM) PT Nusantara III in Simalungun Plantation, North Sumatra. Crude palm oil processing in the country was not only determined to improve foreign exchange, but also add to employment.

The Government fully supports the development of clusters of domestic oil because it can make Indonesia's position parallel to, even expected better from Malaysia.

Malaysia had earlier recognized effort to improve the processing of CPO in the country. "PTPN III is expected to be a driving force for other state-owned plantation companies and private companies to build a cluster of palm," said Mustafa.

He explained in 2010 there were three clusters which developed into the country, each in North Sumatra by PTPN III, d Dumai, Riau, who conducted a private company and one in Borneo.

PTPN III President Director Amri Siregar said the initial cluster is still an area of 104 hectares, but later can be developed up to 3000 hectares. According to him, PTPN III has the acreage of oil palm trees are sufficiently large or 72% of the total vineyard area of almost 142 000 hectares, an area that felt the need to build a cluster of palm. (Yn) By: Between (Between)

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