They said at least 400,000 tonnes of crude palm oil was exported from January through May in 1998. Traders said 440,000 tonnes of CPO was exported in the same period last year, with some putting the figure as high as 1.5 million tonnes.

"Trading is slow and the market is suffering from a lack of fresh leads," said one trader.

Traders in Medan, North Sumatra, said the city was quiet after Thursday's clashes involving rival groups of the divided Indonesian Democratic Party (PDI).

At least 30 people were hurt when the groups clashed in a battle for control of the party offices in city on Thursday.

"Export activities are running normally, especially for those who are committed to July shipment. Those who have not signed any contracts are cooling down because of the higher exporttaxes," said one Medan trader.

The trader said his company was selling cheap olein at3,850 rupiah/kg directly to customers in an effort to help solve cooking oil shortages.

Traders said olein was quoted at 6,000-6,100 rupiah/kg. But deals were also done at 5,900 rupiah/kg for buyers who bought olein in large quantities.

The rupiah's weakness has made exports more attractive than selling in the domestic market, and domestic supply shortages have pushed prices up, traders say.

The rupiah was quoted at 15,200/15,300 against the dollar at 0315 GMT.

The export tax for CPO was raised on Tuesday to 60 per cent from 40 per cent, crude olein to 60 per cent from 40 per cent, RBD palm oil and RBD olein to 55 per cent from 35 per cent, and crude palm kernel oil to 50 per cent from 35 per cent.

The Federation of Indonesian Vegetable Oils and Fats Associations said crude palm oil production was expected to rise by eight percent annually because of the expansion in plantation areas. It said 1998's output wasestimated at 5.61 million tonnes and projected production at 5.84 million tonnes in 1999, 6.07 million tonnes in 2000 and 6.31 million tonnes in 2001.