"The US government has approved Indonesian CPO to be included in the category of eco-friendly commodities. However, there will be an examination conducted by the US Environmental Protection Agency (EPA)," Hidayat saidJakarta (ANTARA News) - The Minister of Industry, M.S. Hidayat has stated that the US government has determined that palm oil and crude palm oil (CPO) products from Indonesia are eco-friendly.
"The US government has approved Indonesian CPO to be included in the category of eco-friendly commodities. However, there will be an examination conducted by the US Environmental Protection Agency (EPA)," Hidayat said here on Friday.
According to him, the government will keep on defending Indonesian CPO's position in the international market to face the trading strategy of European countries and the United States.
"Indonesian CPO has a high added value. It proves that Indonesian products are able to penetrate the international markets," he argued.
Meanwhile, Executive Director of Indonesian Palm Oil Producers Association (Gapki), Fadhil Hasan said that the export duties of CPO will be cut by five percent if Indonesian CPO is included in the category of eco-friendly commodities.
"Besides, as an eco-friendly product, Indonesian CPO will have great potential to expand into the export market," Hasan said.
"By the end of this year, CPO exports are estimated to reach 17.5 million tons, which is lower than the early target of 18 million tons," he continued.
The Indonesian Palm Oil Producers Association noted that Indonesian CPO products are charged for export fees in several countries such as China, India and Pakistan.
However, in American and Australian markets, Indonesian CPO products are subject to non-tariff barriers for being rated as unhealthy and not eco-friendly.
"In Indonesia, the producers of palm oil still have to pay duties that range from 7.5 percent to 22.5 percent, for all kinds of palm oil products," Hasan explained.(*)
Editor: Heru Purwanto
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