Govt vows to lift CPO ban on time
Govt vows to lift CPO ban on time
JAKARTA (JP): The International Monetary Fund (IMF) said
yesterday it had been assured by the government that the export
ban on crude palm oil (CPO) and its derivatives would be removed
April 22 as agreed to in the latest reform package announced last
week.
"I spoke with him (Minister of Trade and Industry Mohamad
"Bob" Hasan) on the telephone yesterday, and I got confirmation
that the ban would be lifted as scheduled," the chief IMF
representative here, Kadhim Al-Eyd, told The Jakarta Post
yesterday.
Al-Eyd was asked to comment on the reported controversial
statement by Hasan on Monday that he would maintain the export
ban indefinitely until domestic cooking oil prices stabilized.
"I also got the same confirmation from Mr. Ginandjar (the
coordinating minister for economy, finance and industry)," Al-Eyd
added.
He expressed his belief that the government would implement
the reform programs as scheduled.
Hasan's remarks, printed by several newspapers Tuesday,
created confusion and frustration among palm oil producers who
have been shut out of the international market since January.
Ginandjar Kartasasmita, apparently concerned about the impact
of Hasan's reported statement on the market, immediately
confirmed Tuesday that the government would lift the palm oil
export ban on April 22 as scheduled.
"It is not true," Ginandjar told Reuters when he was asked
about Hasan's statement which implied backtracking on the part of
the government over the implementation of the IMF-brokered reform
package.
The supplementary reform package agreed to last week was the
third pact between the government and the IMF after the
government was seen to be backsliding on the November 1997 and
Jan. 15, 1998 packages.
The association of palm oil and edible oil producers told the
Post Tuesday that they were dismayed over what they saw as
conflicting and confusing signals from Hasan only a few days
after they had assured him that they would cap the palm oil sales
price at Rp 2,750 per kilogram, compared to the equivalent of Rp
4,885 in the international market.
An official at the finance ministry said yesterday that his
office was calculating export taxes for crude palm oil and its
various derivatives.
He said that although the reform package allowed for a maximum
40 percent in export taxes, the tax rates would not be the same
for all palm oil products.
"We expect to issue the ruling on the export taxes next week
so that exporters can immediately start negotiations with foreign
buyers," added the official who asked for anonymity.
Major crude palm oil producers in North and West Sumatra told
the Post that as long as the government could curb export
smuggling, there should not be any fear of domestic shortages
after it opens the lid on exports. They said national production
this year was estimated at six million tons, while domestic
demand was projected at only 3.5 million tons.
"An export tax of up to 40 percent on olein (the main basic
material for cooking oil) will sharply reduce the margin that can
be gained from exports, especially if the rupiah strengthens
steadily against the dollar," a Medan-based producer said.
But most important, he added, the government would allow
exports only in bulk and not in drums to make inspection easier
and to minimize loopholes for export smuggling. (rei/vin)