There Is An Exemption From Palm Oil Levies, Sri Mulyani's Subordinates Believe They Can Encourage Increased Exports And Increase FFB Prices At The Farmer Level

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) is said to continue to encourage the acceleration of exports and increase the price of fresh fruit bunches (FFB) for palm oil at the farmer level and at the same time contribute to the decline in global CPO prices.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said the government had taken a policy of lowering the export levy rate to US$0 which was decided through a meeting of the Steering Committee of the Palm Oil Plantation Fund Management Agency (BPDPKS) as well as complementing various previous policies.

According to him, the strategy is in accordance with the Regulation of the Minister of Finance Number 115/PMK.05/2022 concerning the Amendment to the Regulation of the Minister of Finance Number 103/PMK.05/2022 concerning the Service Tariff of the BPDPKS Public Service Agency.

"The levy tariff exemption is valid from July 15 to August 31, 2022 and starting September 1, 2022, progressive tariffs will apply again to the price of export levies. This is expected to encourage faster export increases and increase FFB prices at the farmer level," he said in a written statement on Wednesday, July 20.

Febrio added that his party remains committed to improving the welfare of farmers through increasing productivity of oil palm plantations managed by the people, downstreaming palm oil products for the industrial sector by encouraging the development of the oleochemical industry (chemicals derived from fats such as cosmetics and detergents).

"We also support the establishment of small-scale palm oil factories, and increase the competence of human resources, especially development programs that are in accordance with good agricultural practices and support business sustainability," he said.

Furthermore, Sri Mulyani's subordinate also said that the government was committed to continuing the Biodiesel Mandatory Program to support Indonesia's energy mix target of 23 percent by 2025.

"The Biodiesel Mandatory Program which currently reaches B30 which has been implemented is able to create domestic market instruments so as to reduce dependence on the export market," said Febrio.

For information, in order to anticipate uncertainty over high commodity prices, fiscal policy is anticipatory and responsive to protect people's purchasing power and maintain the momentum for economic recovery to continue.

In the context of responding to the increase in CPO and cooking oil prices, the government seeks to implement various control policies aimed at maintaining a balance between availability and affordability of prices as well as the sustainability of the B30 program.