TEMPO Interactive, Jakarta: There is a possibility that the government will raise the standard export price (HPE) for crude palm oil (CPO) and its processed products in line with the recent global oil price increases.
The plan is also related to the previous government’s policy, the putting into effect of a progressive export tax for CPO and its processed products in order to slow down excessive exports--which push up national cooking oil prices.
Mari Elka Pangestu, the Trade Minister, acknowledged that she would review the balance of prices of CPO and its processed products this month.
“The point is we want to reduce exports so that domestic needs are fulfilled, but not too much that we disturb the world’s market as our role is quite large,” she said in Jakarta yesterday (23/10).
As a note, starting this month the government increased CPO’s HPE as the standard for export levies calculation from the previous US$733 per ton to US$760 per ton.
However, the CPO HPE rise is planned to still be in a range between US$750 and US$849 per ton.
Mari further emphasized that with this progressive tax policy, export levies will automatically change based on global CPO prices.
“As far as I remember, a few days ago the CPO price was US$850 per ton and HPE will be determined at the beginning of every month. This early November, the new HPE price will be determined,” she said.
Mari is of the opinion that applying an export tax higher than 10 percent will not be effective in slowing down CPO exports.
This is because the trend of global oil prices that cause CPO price increases will continue fluctuating.
Palm oil producers did not object the government’s plan to raise the CPO’s HPE.
Derom Bangun, Indonesian Palm Oil Businesspeople Association’s General Chairman, said the adjustment of the standard export price was the government’s right.
RR ARIYANI | AGUS SUPRIYANTO