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CPO price weakens; zero export tariff maintained in September
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Trade Ministry International Trade Director General Oke Nurwan (Courtesy of/kemendag.go.id)
T
he Trade Ministry has issued a crude palm oil (CPO) reference price for September of US$603.94 per metric ton (MT), which is 4.46 percent lower than the reference price in August, which was set at $632.17 per MT.
“Now, the CPO reference price has weakened again. The government will impose a zero CPO export tariff in September,” said Trade Ministry’s International Trade Director General Oke Nurwan in a press statement received on Monday.
This means the government will maintain the zero export tariff for CPO that was imposed in August.
The export tariff for CPO was stipulated in Trade Ministerial Regulation No. 89/2018 on the export reference price for agriculture and forestry products that are subject to export tariffs.
Indonesia is among the largest producing countries of CPO. Because of the weakening price of the product in the global market, Indonesia, starting next month, will impose mandatory usage of 20 percent blended biodiesel (B20) for transportation, military vehicles and the mining and heavy equipment sectors.
Meanwhile, the reference price for cacao beans also weakened in September to $2,163.67 per MT, 12.08 percent lower than the price in August, which was $2,461.02 per MT, according to the Trade Ministry's press statement.
The government, however, maintained the export tariff of 5 percent on cacao beans.
The government will also not change the reference prices and export tariffs for both wood and leather products. (bbn)
