20 March 2019

KONTAN.CO.ID - JAKARTA. The government plans to set incentive tariffs for exports of CPO products in mid-2019. In the appendix of PMK 23/2019, the export levy rate for palm oil, CPO, and its derivative products is zero. The zero tariff applies for product prices below US$ 570 per ton, prices of US$ 570 to US$ 619 per ton, and prices above US$ 619 per ton.

Responding to these incentives, Corporate Secretary of PT Mahkota Group Tbk ( MGRO ), Elvi said, although it only applies for the period from March 1, 2019 to May 31, 2019, it sees this as clear evidence that the government has helped and understood the current fluctuating CPO price conditions by not adding a heavy burden to business people.

“Where actually the levy will also be used to help subsidize and develop this business sector. The impact is that the company's financial performance will no longer be burdened by the levy in that period, but will refer to the tiered price system in the period from June 1, 2019 onwards,” Elvi told Kontan.co.id, Wednesday (3/20).

According to him, the positive impact will certainly be able to spur CPO exports without being burdened by the levy even though CPO prices are falling.

Furthermore, the negative impact will come from the reduction of funds for plantation replanting and oil palm business development managed by the government, which will disrupt the dependency of independent smallholders on these funds.

Unfortunately, MGRO currently does not export direct products, so it cannot calculate the amount of efficiency that occurs. However, according to him, export costs are usually one of the components of determining the purchase price of local CPO by companies that will export to local companies, so if the tax rate is high, the selling price of local CPO will automatically be depressed.

“Yes, currently all MGRO CPO products are still sold locally, but in the future MGRO will consider entering the export market. This year's CPO production target is 203,308 tons,” Elvi said.​

Reporter : Yoliawan H 

Editor : Tendi

Source : https://investasi.kontan.co.id/news/ada-insentif-tarif-ekspor-cpo-ini-tanggapan-emiten