Crude palm oil export tax to remain in place: Minister

Crude palm oil export tax to remain in place: Minister

JAKARTA (JP): Industry and trade minister Rahardi Ramelan has
reiterated that the government will not reduce export taxes on
crude palm oil (CPO) and its derivatives, despite the recent
decline in cooking oil prices on the domestic market.

"Up to now, I have not made any changes to the CPO export tax
because if I lower the tax, many (palm oil) producers would get
the wrong idea and that would create price turmoil," Rahardi was
quoted by Antara as saying on Friday.

He said he feared the price of cooking oil, the refined
byproduct of CPO, would rise sharply again if the government
lowered the taxes.

But the government might review export taxes on CPO and its
byproducts before the end of the year, he told reporters at his
office.

The government raised the export tax on CPO to 60 percent last
July in a bid to discourage exports of the commodity.

It also set taxes on refined bleached deodorized (RBD) olein
at 55 percent, crude stearin at 25 percent, RBD stearin at 20
percent, Crude palm kernel oil at 50 percent, RBD palm kernel oil
at 45 percent, crude coconut oil at 20 percent and RBD coconut
oil at 15 percent.

CPO producers began to export most of their produce to cash in
on the rupiah's collapse in value against the U.S. dollar,
leading to a shortage in supply at home. The price of cooking oil
increased sharply as a result.

According to the ministry's Center of Market Information,
unpackaged cooking oil was selling at traditional markets for
around Rp 3,700 per kilogram, while packaged cooking oil was
selling at Rp 6,400 per liter on Friday.

Packaged cooking oil is priced at around Rp 7,000 in
supermarkets.

On Friday, the ministry formally lifted its export ban on
several food products which are no longer subsidized by the
government.

They include all types of wheat and wheat flours, rice flour,
soybean, sugarcane, sugar and kerosene.

Commodities that are still banned from export are husked and
unhusked rice.

In September, the government lifted subsidies on the import of
wheat flour, sugar and soybeans. Subsidies on the import of rice
remain in place. (das)