The Palm Scribe

Some sugar to reduce bitterness felt by CPO exporters

Kontan Harian, 27 November 2018

The government will temporarily revoke export duty on crude palm oil (CPO) and its derivatives. The policy will take effect only after the revision of Finance Ministerial Regulation No. 81/2018 on Service Fee of Indonesian Oil Palm Estate Fund has been issued. Finance Minister Sri Mulyani, however, is currently attending G20 summit in Argentina and is expected to return to Indonesia on December 2.

According to the revision, the government will revoke export duty only if the CPO is priced below $500 per metric ton. Meanwhile, if CPO is priced between $500 and $549, the government will impose duty of $25 per metric ton on CPO, $10 per metric ton on first derivatives, and $5 per metric ton on second derivatives. Export duty will return to normal rate if CPO is priced above $549 per metric ton.

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