Tue, 23 Nov 2010

TEMPO Interactive, Jakarta:The Coordinating Minister of the Economy, Hatta Rajasa, said that downstream palm oil industry needs incentives because of its high export value. “People are not motivated to build the downstream industry,” said Hatta yesterday.

He said that during this time palm oil entrepreneurs have obtained a big profit from exporting crude palm oil. With this condition, only foreign industries have profited.
“So we must consider giving incentives to the downstream industry,” he said.

Besides incentives, said Hatta, there is also a need for disincentives. As an example, Hatta cited that a palm oil export of more than US$ 700 per ton could be charged with excise duty.