Zero Percent Export Tax Makes CPO Prices Start Moving Up, But Still Far From April Prices Of IDR 16,000 Per Kg

JAKARTA - The price of crude palm oil (CPO) began to move up in line with the zero percent export levy tariff policy until August 31, 2022. Now, the price is around IDR 9. 000 from previously under IDR 8,000 per kilogram.

"The price of CPO, which was IDR 9,000 per kilogram, was the highest in July", said Executive Secretary of the Indonesian Palm Oil Association (Gapki) North Sumayeta, Darma Sucipto, quoted by Antara, Thursday, July 21.

The price of CPO on July 14 was still IDR 8,000 per kilogram and decreased to IDR 7,921 per kilogram on July 15, 2022.

Although it has increased since the beginning of the third week of July, it has not yet reached the price in early June which had touched IDR 12,986 per kilogram, and even April's position which was around IDR 16,000 per kilogram.

CPO prices began to fall on June 3 with a figure of IDR 9,215 per kilogram.

Darma said the decline in CPO prices was the impact of weakening demand for palm oil and other vegetable oils.

"Currently, the price of CPO is increasing because, among other things, it is driven by policies on the services of the Public Service Agency of the Palm Oil Plantation Fund Management Agency", he said.

The Regulation of the Minister of Finance of the Republic of Indonesia Number /PMK.05/2022 concerning Amendments to Permenkeu 103/PMK.05/2022 concerning Service Tariffs for the Public Service Agency for the Management of Palm Oil Plantation Funds, he said, is a breath of fresh air for entrepreneurs and farmers.

The price of CPO on July 20 was IDR 9,100 per kilogram, up from July 19 for IDR 8,960 per kilogram.