The extension of the zero export levy is aimed at maintaining the current momentum in which crude palm oil (CPO) price has begun to stabilize, cooking oil price has begun to decline, and fresh fruit bunch price has begun to increase so that farmers h
Jakarta (ANTARA) - The Indonesian government has decided to extend the zero export levy on all palm oil products until October 31, 2022.

"The extension of the zero export levy is aimed at maintaining the current momentum in which crude palm oil (CPO) price has begun to stabilize, cooking oil price has begun to decline, and fresh fruit bunch price has begun to increase so that farmers have begun to enjoy the benefit," Coordinating Minister for Economic Affairs Airlangga Hartarto said in a written statement issued in Jakarta on Monday.

As of July 15, the government has temporarily cut the export levy for CPO to zero from US$200 per ton as well as for other palm oil products as part of efforts to boost CPO exports and reduce the oversupply of fresh fruit bunches.

The decision to extend the zero export levy was taken at a virtual meeting of the steering committee of the Palm Oil Plantation Fund Management Board (BPDPKS) on Sunday (August 28).

The meeting also agreed on additional allocation of biodiesel in 2022, the construction of a refined palm oil plant, support for the acceleration of Indonesian Sustainable Palm Oil (ISPO) certification, and the acceleration of the smallholder oil palm rejuvenation program (PSR).

The government believes that recovery in public economic activities will push up demand for diesel oil in the fourth quarter of 2022. BPDPKS also remains committed to supporting the oil palm plantation sector as one of the national strategic commodities.

To that end, adequate supply of biodiesel containing 30 percent palm oil (B30) will need to be maintained until the end of December by increasing the biodiesel allocation this year to 11,025,614 kiloliters from 10,151,018 kiloliters.

"To increase Indonesian palm oil's acceptance in the global market, the steering committee agreed to expedite the ISPO certification, including creating an ISPO secretariat under the purview of BPDPKS, and supporting activities aimed at accelerating ISPO certification," Hartarto said.

Related news: Government asked to reduce CPO export levy





Translator: Kuntum Khaira R, Suharto
Editor: Rahmad Nasution
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