Bisnis Indonesia, 2 November 2018
The government has given the green light to reduce export duty on crude palm oil (CPO) and its derivatives to help boost the commodity’s competitiveness in the global market. Economic Affairs Coordinating Minister Darmin Nasution on the sidelines of the 14th Indonesian Palm Oil Conference (IPOC) in Bali on Thursday (November 1) said the government was currently reviewing the export duty.
Oil Palm Estate Fund Management Agency (BPDPKS) Chair Rusman Heriawan said export duty cut is highly possible because the agency had been significantly reducing biodiesel subsidy spending following the mandatory 20% biodiesel blend (B20) program. However, he suggested the government cut the export duty to specific countries only, such as India which imposes high import duty on CPO and its derivatives.
Previously, Indonesian Palm Oil Association (GAPKI) Deputy Chair Togar Sitanggang expressed his hope that the government could lower the export duty on packaged cooking oil, citing high demand in the global market.