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Oil palm agency collects Rp 2.1t in export tax toward biodiesel incentive
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An aerial view of an oil palm plantation in Dumai, Riau (Antara Photo/Rony Muharrman)
T
he Indonesian Oil Palm Estate Fund (BPDP-KS) has collected Rp 2.1 trillion (US$147 million) in taxes imposed on palm oil exports in the first two months of 2018, which will be used to incentivize biodiesel producers across the country.
Since July 2015, the BPDP-KS has been imposing export levies of $50 per ton on crude palm oil (CPO) and $30 per ton on processed palm oil products when CPO prices fall below $750.
The revenues from the levies have been used primarily to incentivize biodiesel producers in the fund's support of the government’s biodiesel production policy. The government enforced a 15 percent biodiesel blend (B15) policy in 2015, and has enforced a 20 percent biodiesel blend (B20) since 2016. The incentives cover the price gap between biodiese and conventional diesel.
“Within the first two months of 2018, we collected Rp 2.1 trillion in levies from CPO exports and exports of derivative products totaling 6.5 million tons,” BPDP-KS fund distribution director Edi Wibowo said on Tuesday.
The BPDP-KS aims to collect Rp 13 trillion in levies to support the distribution of 3-3.5 million kiloliters of biodiesel this year.
The fund collected Rp 14.2 trillion in export levies last year from 37.4 million tons of CPO and derivative products.
The BPDP-KS used Rp 10.31 trillion of the proceeds as incentive funds for the distribution of 2.37 million kiloliters of biodiesel, lower than its 2016 figures of Rp 10.69 trillion in incentive funds and 2.77 million kiloliters of biodiesel distributed. (bbn)
