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View all search resultsGovt halts CPO export levy amid declining price
The recent slump in the crude palm oil (CPO) price has prompted the government to temporary remove the export levy charged by the Indonesian Oil Palm Estate Fund (BPDP-KS) for replanting as well as to incentivize the 20 percent blended biodiesel (B20) program
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A worker checks freshly harvested oil palm fruit loaded onto a truck in Pangkalan Bun, East Kalimantan. (JP/Dhoni Setiawan)
T
he recent slump in the crude palm oil (CPO) price has prompted the government to temporary remove the export levy charged by the Indonesian Oil Palm Estate Fund (BPDP-KS) for replanting as well as to incentivize the 20 percent blended biodiesel (B20) program.
The sudden decline of the CPO price to around US$420 per ton recently from around $530 last week triggered the government’s decision, said Coordinating Economic Minister Darmin Nasution in Jakarta on Monday.
“After a long discussion, we agreed that the export levy on CPO and its derivative products for the BPDP-KS, considering the relatively low [CPO] price, should be fully deducted,” said Darmin.
Should the commodity’s price increase to $500 per ton, a $25 dollar export levy will be charged for CPO products, as well as $10 for primary derivative products and $5 for secondary derivative products.
The current export tariffs of $50 for CPO products, $30 for primary derivative products and $20 for secondary derivative products will be charged should the CPO price exceed $549.
A finance ministerial regulation would be issued soon after Finance Minister Sri Mulyani Indrawati returned from the G20 meeting in Argentina, said Darmin.
Darmin also gave assurances that the B20 and oil palm plantation replanting programs would continue despite the government’s latest decision, emphasizing that the oil palm agency “has enough funds” to carry out the program despite the full deduction of the levy. (bbn)
