CPO Export Tax to be Abolished in October

TEMPO.CO, Jakarta - The government will abolished the export tax on crude palm oil (CPO) in October following the shrinking price of that commodity in international market.

"The price of CPO had dropped from US$740 per ton to around US$650 to US$660 per ton. Therefore, the export tax would be reduced to zero percent in October," said Deputy Trade Minister Bayu Krisnamurthi as quoted by Antara News.

The export taxes on CPO derivatives such as olein , both in container and in bulk would also be abolished, Bayu said.

The change in the export tax is automatically effective . It does not need a decision from the relevant authorities.

Last week, at a closed meeting with Chinese palm oil companies in Shanghai , the Indonesian deputy foreign minister still rejected proposal to abolish export tax on palm oil.

"The government would consider the proposal for the export tax abolition , but we have to also consider the Indonesian interest," the deputy foreign minister said at the meeting.

In a bid to promote Indonesian export and imports of palm oil products, the deputy foreign minister was active in maintaining communications with various parties that the government is well informed of their requirements.

Oil palm farmers have complained continued fall of palm oil price. Indonesia is the world's largest producers and exporter of palm oil.

ANTARA