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Jokowi urges Modi to lower palm oil import tariff
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President Joko "Jokowi" Widodo (right) and Indian Prime Minister Narendra Modi (left) hold a press statement after their meeting at the State Palace in Jakarta on Wednesday. (JP/Anton Hermansyah)
P
resident Joko "Jokowi" Widodo has called on Indian Prime Minister Narendra Modi to reduce the import tariff for palm oil products from Indonesia.
"I beg PM Modi's attention regarding the increased tariffs on palm oil products," Jokowi said on Wednesday during a joint press conference after a meeting between the two leaders at the State Palace in Jakarta.
In February, the Indian government had raised the import tax for crude palm oil to 44 percent from 30 percent. The government also raised the tax for refined palm oil products to 54 percent from 40 percent.
According to the Indonesian Palm Oil Producers Association (Gapki), palm oil exports to India reached 7.6 million tons in 2017, up 32 percent from 2016.
In 2017, the Indian market accounted for 24 percent of Indonesia’s total palm oil exports.
Last year, Indonesia increased its palm oil exports by 23 percent year-on-year to 31.05 million tons.
The Indian government subsequently raised its import tariff on palm oil. Before the hike, in November 2017, it had raised the tariffs for crude palm oil to 30 percent from 15 percent and for refined palm oil to 40 percent from 25 percent.
Coordinating Economic Minister Darmin Nasution said India had raised its tariff on palm oil three times in one-and-a-half years, which was a heavy burden for Indonesian exports to India. (bbn)
