THIS IS WHAT MAHKOTA GROUP (MGRO) SAID REGARDING THE NEW CPO EXPORT LEVY REGULATION
09 March 2019
KONTAN.CO.ID - JAKARTA. Palm oil export levy rates will be regulated in a new Minister of Finance Regulation (PMK). In the previous regulation, the palm oil export levy was based on a reference price of US$ 570 according to Minister of Finance Regulation Number 152/PMK.05/2018.
In the latest PMK, the government eliminates the export levy rate if the price is below US$ 570 per metric ton. If the price is between US$ 570 and US$ 619 per ton, the export levy will be US$ 25 per ton.
Furthermore, if the CPO price has returned above US$ 619 per ton, the amount of palm oil levy will return to the level of US$ 50 per ton.
Regarding this regulation, Chief Executive Officer (CEO) of PT Mahkota Group Tbk, Usli Sarsi said that his party sees this regulation as clear evidence that the government understands the condition of CPO prices which are still fluctuating by not adding to the burden on these business actors.
“In addition, the levy will also be managed by the state to help subsidize and develop this business sector. As a result, the company's financial performance will no longer be burdened by the levy, but will refer to the tiered price system,” he explained to Kontan.co.id, Friday (8/3).
He said the positive impact of the regulation related to export levies with tiered price limits would certainly spur CPO exports without being burdened by these levies despite the condition of CPO prices falling.
“The negative impact that will arise comes from the reduction of funds for plantation replanting and oil palm business development managed by the government, where the dependence of independent smallholders on these funds will be disrupted,” he concluded.
Reporter : Ika Puspitasari
Editor : Tendi