Curb measure on CPO export explained<\/p>\n
JAKARTA (JP): The government announced yesterday full details
\nof its new measure to curb exports of palm oil and related
\nproducts, in a bid to stabilize the commodity's local prices.<\/p>\n
Under a Ministry of Industry and Trade decree, which goes into
\neffect today, the government appointed 17 groups, owners of 214
\noil palm plantation companies and all olein refineries in the
\ncountry, to supply the local demand for crude palm oil (CPO) and
\nolein.<\/p>\n
The 17 groups include the Salim Group, which owns 12 crude
\npalm oil mills, PT Bukit Kapur Reksa and Group, PT Smart Corp and
\nGroup, PT Musim Mas and Group, Raja Garuda Mas and Group, Astra
\nAGRO Lestari, and the joint marketing division of state-owned
\nPTPN.<\/p>\n
The remaining 10 companies are Tunas Baru Lampung and Group,
\nthe Lonsum Group, Socfindo, Dutapalma Nusantara, Sipef and Tolan
\nTiga, Permata Hijau Sawit and Tasik Raja, the Tidar Group, GAPKI
\nand AIMI, Hasil Karsa and Group, and PT Bintang Era Sinar Tama
\nand Group.<\/p>\n
Minister of Industry and Trade Tunky Ariwibowo said yesterday
\nthe decree, which would be effective for the next six months,
\nrequired the 17 companies to sell 80 percent of their total
\nproduction locally.<\/p>\n
This would total about 2.3 million tons of CPO and 1.86
\nmillion tons of olein, he said.<\/p>\n
The companies were free to export the remaining 20 percent of
\ntheir product, he said.<\/p>\n
\"We expect that the production volume allocated for the
\ndomestic market by the 17 groups will supply local demand for the
\nnext six months,\" he said.<\/p>\n
He said a sufficient amount of the commodity would curb the
\nmuch expected price hike of cooking oil, especially around the
\nIslamic Ramadhan season in January.<\/p>\n
Tunky said companies, other than the 17 groups, were not
\nobligated to allocate their products for the domestic market.<\/p>\n
However, the companies would be imposed a new tax, in addition
\nto the 4 percent to 5 percent existing export tax, if they
\nexported over 20 percent of their products, he said.<\/p>\n
The new tax, which also comes into effect today, is 30 percent
\nfor CPO, refined bleached deodorized (RBD) palm oil and crude
\nolein. The government also imposes a 28 percent surcharge on
\nrefined bleached deodorized olein.<\/p>\n
The government now charges a 5 percent export tax on CPO, RBD
\npalm oil and RBD olein, and a 4 percent export tax on crude
\nolein.<\/p>\n
Tunky said those which allocate 80 percent of their products
\nto the local market would be exempt from the export tax.<\/p>\n
Those companies could export their products themselves or
\nthrough one of the 17 groups, he added.<\/p>\n
The new export measure will limit Salim Group's CPO exports in
\nthe next six months to about 31,995 tons, out of a total
\nproduction of 159,974 tons, and its olein to 13,793 tons out of
\n68,967 tons.<\/p>\n
Smart Corp's exports will also be curbed to 50,804 tons of CPO
\nand 26,375 tons of olein, while those of Musim Mas to 42,988 tons
\nof CPO and 90,284 tons of olein, and those of Bukit Kapur to
\n54,312 tons of CPO and 75,749 tons of olein.<\/p>\n
Raja Garuda's exports will be also limited to 27,356 tons of
\nCPO and 14,098 tons of olein, while those of PTPN will be cut to
\n145,712 tons of CPO and 15,047 tons of olein.<\/p>\n
Astra's exports will be lowered to 23,448 tons of CPO and
\n2,652 tons of olein under the new export quota.<\/p>\n
Asked whether the new tax would help curb the commodity's
\nexports, Tunky said the companies would likely profit more from
\ntrading in the domestic market than having to pay the export
\nsurcharge.<\/p>\n
\"But we'll have to wait until the law is fully implemented to
\nsee if it works.\"<\/p>\n
The government could not stop companies from exporting, he
\nsaid, adding: \"This is just to discourage them, we are not
\nhalting export activities.\" (das)<\/p>",
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"sponsor": "Okusi Associates",
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