The Palm Scribe

Replanting program hindered

Bisnis Indonesia, 2 March 2019

The government’s decision to keep export duty of crude palm oil (CPO) and its derivatives at zero may hinder the replanting program, considering that some of the export duty collected by the Indonesian Oil Palm Estate Fund (BPDPKS) is being used for the program. The Trade Ministry recently adjusted the reference price for export of CPO and its derivatives at $595.98 per metric ton, which took effect on March 1. However, BPDPKS Steering Committee decided not to impose export duty until a new regulation has been issued.

Both Indonesian Vegetable Oil Association (Gimni) Executive Director Sahat Sinaga and Indonesian Oil Palm Farmers Association (Apkasindo) Secretary General Rino Afrino asked the government to consider the effect of CPO export revocation because smallholders rely heavily on replanting fund given by the BPDPKS.

Share This