JAKARTA – The Indonesian government is considering to revise down the palm oil export duty to push up the export of the world’s most consumed vegetable oil.
Bloomberg quoted reliable sources as saying recently that the palm oil export duty at US$255 per ton is too high and is seen as one factor that is potential to make it not competitive at the global market. It might be cut to US$175 per ton, which will be charged when the reference price exceeds US$1,000 per ton.
Meanwhile, minimum retribution fees at US$55 per ton for crude palm oil (CPO) will be charged if the reference price of palm oil is set at US$750 per ton or lower.
Then, for every increase of US$50 to the palm oil price, retribution fees for the unprocessed CPO will be raised to US$20 per ton. The retribution fees for processed products will be raised to US$16 per ton.
“The revision will be implemented after finance minister signs the planned policy. Possibly, it will be realized in mid-June this year,” the source told Bloomberg.
Musdhalifah Machmud, Deputy in charge of food and agribusiness coordination at the economic coordinating ministry, refused to comment on the planned revision of the CPO export tariff. But she did say that the government has reviewed the CPO export duty in every three months.
Currently, the Indonesian government set the CPO export duty at US$55 per ton when the reference price reaches US$670 or less. Then, the maximum CPO export duty is set at US$255 per ton when the reference price exceeds US$995 per ton.
The reduction of the export tariff will make Indonesia’s CPO more competitive than Malaysia’s, helping Indonesia to expand its global export market. (*)
Source: KONTAN.CO.ID | Featured image via ensia.com