CPO export surges on lower export tax
CPO export surges on lower export tax
JAKARTA (JP): Indonesia's monthly export volume of crude palm
oil (CPO) and its by-products surged by 475 percent to 358,917
metric tons in February from 62,449 tons in January following the
government's decision to lower the export tax imposed on CPO and
its derivatives.
Data from Directorate General of Customs and Excise shows that
the export value rose to US$819.88 million in February from
$33.53 million in the previous month.
The sharp increase in export volume and value was due to the
government's move to slash the export tax on CPO and its
derivatives to as high as 40 percent from 60 percent starting
Jan. 29.
The biggest increase was recorded in the exports of Refined
Bleached Deodorized (RBD) Olein, which surged to 312,978 tons
worth $798.37 million in February from 8,800 tons worth $5.84
million in January.
However, government receipts from the export tax in February
dropped by 34 percent to Rp 61.18 billion from Rp 92.57 billion
in January.
Indonesia's oil palm plantations are expected to yield six
million tons of crude palm oil this year, up from the 4.9 million
tons produced last year.
The Ministry of Industry and Trade said on Friday that it has
decided to maintain the reference prices used to calculate the
payment of export taxes on CPO and its by-products. The current
reference prices will be effective until June 14.
The reference price of CPO is maintained at US$430 per metric
ton. The reference price of oil palm kernel is set at $90 per
ton, RBD palm oil is $435 per ton, crude palm olein is $445 per
ton and RBD palm olein is $460 per ton.
The reference price of RBD palm olein in branded packs up to
five kilograms is set at $520 per ton, while the reference price
for crude palm stearin is $300 per ton. The new reference price
for RBD palm stearin is $340 per ton, crude palm kernel oil $435
per ton, RBD palm kernel oil $460 per ton, crude coconut oil $440
per ton and RBD coconut oil $470 per ton.
The ministry said that the reference prices were maintained
because there was no sharp fluctuation in the prices of CPO and
its derivatives in the international market.
Coffee
In a similar development, the Association of Indonesian Coffee
Exporters has urged the government to delay the implementation of
the planned export taxes on primary products, especially coffee,
due to declining prices in the international market.
The association's executive secretary, Noer Madjid, said
coffee prices in the international market have shown a decreasing
trend due to increasing production in main coffee producing
countries like Brazil, Colombia as well as Indonesia.
"If the government continues its plan to impose an export tax,
even though it is only 5 percent, many exporters will stop their
activities because the business would no longer be profitable,"
he said.
Noer said local exporters are currently facing hardships
because foreign buyers have asked for a discount.
Indonesian coffee exporters are also obliged to pay various
levies for transportation and shipment, he said.
Noer said the various levies have lowered exporters' profit
from about 30 percent in the 1990s to a current 5 percent.
He feared that the export tax would make Indonesia's coffee
exports, which are facing tough competition from Vietnam, less
competitive in the international market.
Minister of Industry and Trade Rahardi Ramelan said earlier
this month that the government planned to impose an export tax on
primary products such cocoa and coffee in a bid to encourage
local downstream industry and to boost exports of more value-
added secondary products.
Indonesia, the world's number three coffee producer, after
Brazil and Colombia, is expected to produce 470,000 tons of
coffee this year, an increase from 430,000 tons last year.
The country's coffee exports are estimated to reach 350,000
tons this year, up from 325,000 tons last year. (gis)