Govt to maintain ban on CPO exports: Tunky<\/p>\n
JAKARTA (JP): The government stressed again yesterday that it
\nwould maintain its export ban on crude palm oil (CPO) and all its
\nderivatives except stearin and palm kernel oil to secure the
\nsupply of cooking oil to the domestic market.<\/p>\n
Outgoing Minister of Industry and Trade Tunky Ariwibowo said
\nthe export ban would only be lifted if the local supply of
\ncooking oil returned to normal.<\/p>\n
The ban affects exports of CPO, refined bleached deodorized
\npalm oil, crude olein and refined bleached deodorized olein.<\/p>\n
Last month, the government lifted its ban on the export of
\nstearin and palm kernel oil.<\/p>\n
\"If the price stabilizes and there is a guarantee that the
\nsupply for domestic needs is sufficient, we would consider
\nallowing exports again,\" he said following a meeting with
\nPresident Soeharto.<\/p>\n
Tunky also revoked his previous decree -- issued on Dec. 17 --
\nwhich established a 20 percent quota on the export of palm oil
\nand olein and imposed a 28 percent to 30 percent surcharge tax on
\nexports which exceeded the quota.<\/p>\n
Last December the government banned the export of CPO, olein
\nand other CPO derivatives until March to ensure an adequate
\ndomestic supply of cooking oil and to stabilize the price.<\/p>\n
The measure failed to stop cooking oil prices soaring and food
\nstores have run short.<\/p>\n
CPO producers are reportedly withholding their products to
\ngain from sales overseas when exports are allowed again, while
\nmany retailers are stockpiling cooking oil for when prices go up
\nafter the export ban is lifted.<\/p>\n
The price of spot CPO in Europe has risen from US$557.50 per
\nton before the ban -- which became effective on Jan. 1 -- to $680
\nper ton at present while olein has gone from $572.50 to $652.50
\nper ton.<\/p>\n
According to the Ministry of Industry and Trade, cooking oil
\nsupply from January to April is expected to reach 923,023 tons,
\ncomprising 863,023 tons from CPO production and 60,000 tons from
\ncoconut oil.<\/p>\n
The domestic consumption of cooking oil for the same period is
\nestimated to be 611,746 tons.<\/p>\n
Indonesia is the world's second largest producer of CPO after
\nMalaysia with total supply this year projected to reach 5.9
\nmillion tons. Local annual demand is usually about 3.5 million
\ntons.<\/p>\n
Outgoing Minister of Agriculture Sjarifudin Baharsjah said
\nyesterday that the state-owned plantation firm PT Perkebunan
\nNusantara would supply 58,000 tons of olein to the domestic
\nmarket in April.<\/p>\n
Sjarifudin said after meeting President Soeharto that PTPN's
\nCPO production in April was estimated at about 133,000 tons which
\nis equivalent to more than 63,000 tons of olein.<\/p>\n
He said that PTPN's olein would be released to the domestic
\nmarket if the price of cooking oil continued to increase.<\/p>\n
Last month, the minister said that PTPN would sell about
\n100,000 tons of CPO per month, virtually 100 percent of its
\nproduction.<\/p>\n
PTPN at present produces about 1.8 million tons of CPO a year
\nwhich is enough to make about 1.5 million tons of olein. Olein
\naccounts for 70 percent of all CPO products. (gis\/prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-maintain-ban-on-cpo-exports-tunky-1447893297",
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