Indonesia plans to overtake Malaysia as the world's largest palm oil producer in 2007 by producing more than 16 million tons of palm oil, an industry association said Monday.

"By 2007, Indonesia's palm oil production will exceed 16 million tons, while Malaysia's production is predicted maximum at 16 million tons due to land constraints, allowing Indonesia to take the lead," said Derom Bangun, chairman of the Indonesian Palm Oil Producers Association (Gapki).

The association has targeted to boost production to 14.7 million tons this year from 13.6 million tons last year.

Indonesia has palm plantation of 5.15 million hectares across the country, he was quoted by the national Antara news agency as saying in North Sumatra province.

Source: Xinhua