US Dollar Zero Palm Oil Export Features Extended Until October 31

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Steering Committee of the Palm Oil Plantation Fund Management Agency (BPDPKS) has again extended the export levy (PE) tariff of US$zero for all palm oil products until October 31, 2022.

"The extension of the PE rate of zero US dollars is intended to maintain current momentum, where the price of crude palm oil (CPO) is starting to stabilize, cooking oil prices are starting to fall, and the price of fresh fruit bunches (FFB) is starting to increase, making farmers or planters begin to feel the benefits", said Coordinating Minister for the Economy Airlangga Hartarto as quoted by Antara, Monday, August 29.

The extension, which was set out at the virtual BPDPKS Steering Committee meeting on Sunday, August 28, also approved the addition of the biodiesel allocation in 2022, the construction of a red food oil plant (3M), support for accelerating the increase in Indonesian Sustainable Palm Oil (ISPO) certification, and accelerating the people's palm oil rejuvenation program (PSR).

The government believes the increase in community economic activity is projected to lead to an increase in diesel oil demand in the fourth quarter of 2022.

BPDPKS also remains committed to supporting the oil palm plantation sector as one of the national strategic commodities.

Therefore, the adequacy of biodiesel as a mixture of B30 products until the end of December 2022 needs to be maintained by increasing the allocation of biodiesel volume this year, which was originally 10,151,018 kiloliters to 11,025,604 kiloliters.

"To increase the acceptance of Indonesian palm oil in the world market, Komrah (Directorial Commission) agreed to accelerate the increase in ISPO certification. Among other things, by placing ISPO secretariats under BPDPKS, as well as supporting activities aimed at accelerating the increase in ISPO certification", explained Coordinating Minister Airlangga.

In addition, the Komrah meeting also requested that a coordination meeting with law enforcement officers (APH) be held immediately as an effort to accelerate the implementation of the PSR program.

Furthermore, it was also given a mandate to the Ministry of Agriculture and BPDPKS to immediately conduct a study related to PSR assistance funds, which are currently only until P0 becomes TM1.