August 13, 2007

Indonesia taps Malaysia for corn exports

Indonesia is considering to export four million tonnes of corn to Malaysia as China, the main supplier to Malaysia, has started slashing its corn export volume due to ethanol.

Andy Gumala, Asean Business Manager of PT DuPont Indonesia, as the possibility of China halting its corn exports looms, Indonesia may fill up the gap as Indonesian corn prices are competitive due to its proximity to Malaysia.

He added that the rising demands for corn to produce ethanol had boosted the potential of rice.

PT DuPont Indonesia is expected to boost its corn production in some provinces in Indonesia, such as North Sumatra, Lampung, Central Java, East Java, and Aceh.

If the regional potential could be fully realized, he explained, it would improve the welfare of corn farmers as well as helping Indonesia produce fuel from bio-ethanol.