Wednesday, 06 February, 2008 | 16:25 WIB<\/p>\n
TEMPO Interactive, Jakarta: The government\u2019s policy to increase crude palm oil (CPO) export levy up to 25 percent - if international prices go beyond US$1,300 per ton - will not be effective to lower cooking oil price in the domestic market.<\/p>\n
This is because CPO prices will probably continue increasing and by followed by local cooking oil manufactuers.<\/p>\n
\u201cIt would be different if what was intensified were cooking oil subsidies,\u201d Akmalludin Hasibuan, General Chairman of the Indonesian Palm Oil Producers Association, told Tempo in Jakarta yesterday (5\/2).<\/p>\n
The statement was a response to the government\u2019s policy that set a progressive export levy through the food policy package of February 1.<\/p>\n
The decision was that the CPO export levy go up 25 percent.<\/p>\n
Adiwisoko Kasman, Head of the Indonesian Cooking Oil Industry Association, estimated that retail cooking oil prices could go down 10 percent after the government bears the value-added tax (VAT).<\/p>\n
But if the external factors rises (CPO prices in the international market), we don\u2019t know. Today (yesterday) CPO prices in the international market rose very high, even exceeding US$1,100 per ton,\u201d he said.<\/p>\n
In the mean time, Director General of Domestic Trade, Ardiansyah Parman, confirmed that the government will not set the target of cooking oil price decrease at a certain level due to the implementation of the food price stability policy.<\/p>\n
\u201cThe target is that the household (cheap market) price goes down by Rp2,500 per kilogram, not the national price down by Rp2,500,\u201d he said.<\/p>\n
Ardiansyah went on to say that the government could only hope that cooking oil price will go down during the next six months.<\/p>\n
The government, according to him, had difficulties in targeting the price decrease as the CPO price trend in the international market is currently fluctuating.<\/p>\n
Trade Minister Mari Elka Pangestu is still optimistic that unbranded and packaged cooking oil prices will go down after the government bears the VAT.<\/p>\n
\u201cThe packaged cooking oil price should be able to go down 10 percent,\u201d she said.<\/p>\n
RR ARIYANI<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/cpo-export-levy-increase-not-effective-1202346862", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }