Indonesia Adjust Expor Levies for CPO and Derivatives - Photo by CMEA Office

JAKARTA (TheInsiderStories) – Indonesian government has agreed to adjust export levies of Crude Palm Oil (CPO) and its derivative products by the Palm Oil Plantation Fund Management agency. The reason is, the recent CPO prices continue to decline and touched  US$410 per ton on Nov. 23.

“In eight to nine days ago the price in the range of $530 a ton. We need to make adjustment to help the producer and the farmers,” said Coordinating Minister for Economic Affairs Darmin Nasution during the Press Conference on Monday (11/26) at his office.

He asserted, the decision will be temporarily applied. If the price starts to improve to the level of $550 per ton, the levies will be returned to the initial collection mechanism.

Minister of Agrarian and Spatial Planning/Head of the National Land Agency Sofyan Djalil added, this policy was taken due to emergency conditions. For that, he continued, the government must intervene so that supply is not excessive, and at the same time the prices can also take sides and guarantee the interests of farmers and industry.

Nasution assured the decision will not hold the biodiesel 20 percent (B20) program, People’s Oil Palm Rejuvenation, and other program. While the implementation of this policy will be further regulated in the Minister of Finance regulation.

He said, “I have agreed with the Minister of Finance. He will sign this policy after returning from Argentina. Of course this policy will take effect since the regulation comes out. ”

The meeting also agreed on the need to strengthen data collection from all plantations. This data collection, said the minister, is a form of Indonesian plantation management.

In addition, this data collection will also be carried out in conjunction with the Program for Settling Land Tenure in Forest Areas and the Palm Oil Moratorium Program.