JAKARTA - Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan said that currently the government is continuing to make various efforts so that the price of fresh fruit bunches (FFB) for palm oil can rise. Luhut explained that the problem still occurs on the upstream side, namely related to the realization of CPO exports, it still takes time.
According to Luhut, the realization of exports will be smooth starting next week. That way, Luhut hopes that the price of TBS will rise again when the export process will run smoothly. Luhut said he also asked Finance Minister Sri Mulyani to review the reduction in export reduction rates.
"But that's not enough, so that it goes smoothly we might lower it, last night I talked to the Minister of Finance TPE (export levy tariff) maybe we bring it down. So that people are given incentives for exports," he said at the AKPSI Coordination Meeting, at the Sahid Hotel, Jakarta, July 7th.
Luhut explained that if the CPO export went smoothly, the oil palm oil factory tank would re-absorbed the domestic TBS of oil palm farmers. Thus, the price of TBS can go up again.
Furthermore, Luhut also said that the government plans to absorb FFB in the country through an increase in new and renewable energy from B30 to B40.
"Then we made B30 into B40, there were also 2.5 million tons of entry there, that would also mean demand has increased," explained Luhut.
Luhut admitted that raising the price of TBS was not easy. One of them is exacerbated by the steps of countries that have started to reopen export faucets for solar oil or Sunflower. One of them is Ukraine. In fact, Ukraine has also reduced export taxes for these commodities.
"The Sunflower oil has not been exported for a long time, how long has it been? It's been 4-5 months, right. Now that he has lowered taxes, he has brought exports of influence to others," he explained.
Previously, the General Chairperson of the Indonesian Palm Oil Farmers Association (Apkasindo) Wrest ME Manurung asked the government to lower its CPO duties, which are currently US$288 to $200.
Then, Apkasindo also hopes for export levies from the current 200 US dollars to 100 US dollars. This brings the total CPO price burden to 350 US dollars.
Assuming the CPO Cif Rotterdam price is 1,400 US dollars as of June 23 and the burden is reduced by 350 US dollars, then the price of Indonesia's CPO should be 1,050 US dollars. So, if 1,050 dollars is converted to rupiah currency, then the price of Indonesia's CPO should be at Rp15,500 per kilogram.
Then, said Apkasindo, if it is transmitted to the price of TBS, oil palm farmers will get a result of Rp. 3,300 per kilogram.
"This is what Mr. Luhut said that the price of TBS must be above three thousand," said Wrestling.
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