{
    "success": true,
    "data": {
        "id": 1003728,
        "msgid": "export-tax-on-cpo-counter-productive-1447893297",
        "date": "1994-09-06 00:00:00",
        "title": "Export tax on CPO counter-productive",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "Export tax on CPO counter-productive JAKARTA (JP): Economist Sjahrir yesterday lamented the government's policy of introducing an export tax on crude palm oil (CPO) products, saying that such a measure is counter- productive against efforts to foster non-oil exports. \"Amid the wretched performance of our non-oil exports, what has been introduced by the Ministry of Finance is very, very difficult to understand,\" Sjahrir said after speaking about thermal power plants.",
        "content": "<p>Export tax on CPO counter-productive<\/p>\n<p>JAKARTA (JP): Economist Sjahrir yesterday lamented the<br>\ngovernment's policy of introducing an export tax on crude palm<br>\noil (CPO) products, saying that such a measure is counter-<br>\nproductive against efforts to foster non-oil exports.<\/p>\n<p>\"Amid the wretched performance of our non-oil exports, what<br>\nhas been introduced by the Ministry of Finance is very, very<br>\ndifficult to understand,\" Sjahrir said after speaking about<br>\nthermal power plants.<\/p>\n<p>Based on recommendations from the Ministries of Trade,<br>\nIndustry and Agriculture as well as the government-run semi-<br>\nbuffer stock agency Bulog, the Ministry of Finance last week<br>\nintroduced an export tax on CPO products to protect local<br>\nproducers and stabilize domestic cooking oil prices.<\/p>\n<p>The tax, which took effect on Sept. 1, is imposed only when<br>\nthe price of cooking oil on the local market reaches above Rp<br>\n1,250 (57 U.S. cents) per kilogram. The tax rates vary according<br>\nto the volume of the exports and their FOB (free on board)<br>\nprices.<\/p>\n<p>Sjahrir argued that if the aims are to protect local producers<br>\nand to stabilize local prices, introducing the export tax is<br>\ncounter-productive for both the country's exports and the<br>\nindustry's production efficiency.<\/p>\n<p>\"If it's only about price control, everybody knows the best<br>\nway is by liberalizing trade so that there is no significant<br>\ndifference between domestic and overseas prices,\" Sjahrir said.<\/p>\n<p>He noted that Indonesia should continue to deregulate its<br>\nexport-import policies which hamper fair competition. \"Only by<br>\nfair competition will the efficiency of local industry improve,\"<br>\nhe said.<\/p>\n<p>The prices of CPO products in Indonesia, the lowest in Asia,<br>\nhave discouraged local producers from selling their products at<br>\nhome. The price of cooking oil in Indonesia, for instance, is<br>\nUS$663 per ton, lower than $680 in Malaysia, the world's biggest<br>\nproducer of palm oil, and $720 in Europe.<\/p>\n<p>The chairman of the association of cooking oil producers said<br>\nrecently that introducing the progressive tax on CPO exports may<br>\ndiscourage new investment for CPO production.<\/p>\n<p>The government is currently engaged in an intensive campaign<br>\nto encourage investors to open new palm oil plantations in a bid<br>\nto increase annual CPO production to around seven million tons by<br>\n2000 from four million tons at present. (rid)<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/export-tax-on-cpo-counter-productive-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}