VIVAnews - The government will look into the chance of implementing export duty for crude palm oil (CPO) from zero percent to between 1.5 and two percent. The implementation is taken to control the rising domestic prices of cooking oil.
Deputy Minister for the Economy on Agriculture and Maritime Affairs Division, Bayu Krisnamurti, said on Monday, April 6, that the oil palm prices overseas are rocketing. "The price is on the rise. It now reaches US$650/metric ton," said Krisnamurti.
Due to the increase in international oil palm prices, domestic crude olein price reaches Rp 7,800 per liter. In fact, three weeks ago, it was still at around Rp 7,000 per liter.
Another factor, he said, is that India is applying counter trade policy in dealing with the crisis. The policy will free CPO products from being imposed import duty. However, the derived products will be charged import duty. "We receive the impact. It is merely like selling raw materials. In fact, we want to improve added values. Therefore, we will try to discuss about the export duty," said Krisnamurti.
Another consideration deals with exchange rate. In late 2008, as CPO export duty was set at zero, the Rupiah currency was at that moment Rp 9,400 against US dollar, while today's currency reaches Rp 11,000 against US dollar.
"We will take into account whether or not [export duty] of 1.5 percent will be imposed to below US$700/metric ton while above [US$700] exports will be added by 1.5 percent. But it was only a discourse," he said.
With the new export duty, the government is expecting that domestic price of crude olein can be lowered.
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Translated by: Bonardo Maulana Wahono
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