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Jakarta Post

Businesses relieved as France drops plan to impose extra tax

  • Dewanti A. Wardhani

    The Jakarta Post

Jakarta   /   Sat, June 25 2016   /  08:22 am

Indonesia, the world’s largest producer of palm oil, can now breathe a sigh of relief following a decision by the French legislature to scrap a plan to impose a hefty additional tax on the product.

Previously, Indonesia strongly protested against France’s plan to issue a biodiversity law that would have tripled import taxes on palm oil products, one of the country’s main export commodities. The draft, citing environmental protection, stipulated that exporters would be obliged to pay as much as €300 (US$331) for each metric ton in 2017, €500 in 2018, €700 in 2019 and €900 in 2020. At present, Indonesia is required to pay an import duty of only €103 per metric ton.

The head of land and spatial division of the Indonesian Palm Oil Producers Association (GAPKI), Eddy Martono, said industry players were satisfied with the result and gave its highest appreciation ...