Govt to Collect Fund from Each Ton of CPO Production

TEMPO.CO, Jakarta - The government has confirmed that it will collect US$50 for each ton of crude palm oil (CPO) and US$30 for each ton of olein product to be used as national CPO supporting fund, Coordinating Economic Minister Sofyan Djalil said after a coordination meeting in Jakarta on Friday, March 21, 2015.

Attending the coordination meeting to discuss CPO and biofuel utilizations were Industry Minister Saleh Husin, Environment and Forestry Minister Siti Nurbaya Bakar and representatives of CPO farmers.

Sofyan added that the fund will be saved in a separate account and would not be recorded as a state income in the State Budget since it will be directly distributed as an incentive for CPO farmers.

“[A certain portion] of the fund will be used as a subsidy. The rest will be used to rejuvenate people’s plantations, to conduct research and development, and to education people about CPO production,” Sofyan said.

Sofyan continued that the government will not impose export duty for CPO farmers, especially when the export price is below US$750 per ton. However, the government will apply the export duty, as well as the US$50 collection per ton, when the price climbs to US$750 and above.

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