INDONESIA TO IMPORT PALM OIL, FEARS MAY SHORTAGE
Indonesia has issued licences to
traders to import palm oil to avert a possible shortage of
cooking oil during the Moslem fasting month of Ramadan in May,
Trade Minister Rachmat Saleh told Reuters.
    "We have given permission for a small amount of imports to
prevent a shortage during Ramadan," he said. He gave no figures
for the amount of palm oil to be imported, but said it would
come from Malaysia.
    Indonesia, the world's second largest palm oil producer,
earlier denied it had granted palm oil import licences.
    Saleh was replying to a question from Reuters after traders
in London said Indonesia had issued licences to import around
135,000 tonnes of palm oil for delivery in April.
    Indonesia, with 168 mln people, is the world's largest
Moslem country. During Ramadan Moslems fast during the day and
have large meals after sunset.
    Indonesian crude palm oil exports in the first 11 months of
1986 were 469,100 tonnes, according to central bank figures,
against 652,000 tonnes in the whole of calendar 1985.
    Indonesia is expanding palm oil output, and Saleh did not
explain why there might be a shortage during Ramadan.
 REUTER
