Govt to cut CPO export tax

JAKARTA (JP): The industry and trade ministry has recommended to the finance ministry that the export tax on crude palm oil (CPO) be halved from 10 percent to 5 percent and that on palm oil products be abolished in a bid to increase the commodity's competitiveness on the international market.

"Indonesian CPO will become more competitive overseas if its export tax is lowered to 5 percent," said Minister of Industry and Trade Luhut Pandjaitan at a hearing with the House of Representatives on Wednesday.

The international price of CPO is now hovering at around US$310 per metric ton, Luhut added.

Indonesian exporters have complained that the high export tax has affected the competitiveness of Indonesian palm oil in India, Pakistan and several other South Asian countries.

Malaysia is Indonesia's main competitor on the international palm oil market.(cst)