NORTH SUMATRA APINDO VICE CHAIRMAN USLI SARSI SUPPORTS CPO EXPORT TAX REDUCTION
15 August 2022
The government's decision through the Minister of Finance, Sri Mulyani Indrawati, to remove export levies on crude palm oil (CPO) and its products down to zero percent was welcomed by the Deputy Chairperson of the Indonesian Employers Association (Apindo) of North Sumatra in the field of plantations and agriculture, Usli Sarsi.
Although the reduction in CPO export levies until August 30, 2022, can boost export volumes. We know that when the government made a policy to ban CPO exports, many stockpile tanks were full, even if some were not full, only a small part. As a result, palm oil mills (PKS) stopped production because the stockpile tanks were full. The non-production of PKS has an impact on the price of palm oil which has decreased. Likewise, when the government raised the export tax on palm oil quite high, PKS limited production.
With the reduction of CPO export tax to zero percent until August 30, 2022, the palm oil industry in the country can export CPO, so that the problem of limited stockpile tanks which has been one of the causes of PKS not producing CPO becomes a solution.
“We hope that until August 30, 2022, the CPO in the stockpile tank can be exported and the PKS will return to producing CPO,” he said.
If the export volume can be increased, it can smooth the palm oil industry chain from upstream to downstream. This will certainly increase the price of fresh fruit bunches (FFB) defensively, and as a result, palm oil farmers will be greatly helped.
Usli hopes that after the CPO export tax reduction period ends on August 30, 2022 and returns to the progressive CPO and derivative export levy tariff scheme, the palm oil industry in the country will be stable.
“The palm oil industry is proven to be able to improve the Indonesian economy. If the palm oil industry is managed properly, it can improve the welfare of the Indonesian people,” said Usli.