Jakarta (ANTARA News) - The Indonesian government on Friday announced an increase in export duty on crude palm oil (CPO) and its derivatives after a so-called price stabilization program failed to curb the skyrocketing price of domestic cooking oil.
"The results of our daily discussion and review suggests that we are facing an unstable cooking oil price. Although CPO and cooking oil producers have agreed to stabilize the price of cooking oil within the range of Rp6,500 to Rp6,800 a kg, the price is still well above the figures. That is why, the government has decided to impose a new export duty on various oil palm products starting today," Coordinating Minister for Economic Affairs Boediono said following a limited coordination meeting with Finance Minister Sri Mulyani Indrawati, Industry Minister Fahmi Idris and Agriculture Minister Anton Apriyantono.
Export duty on fresh fruit bunches and kernels is raised to 10 percent from 3 percent, CPO to 6.5 percent from 1.5 percent, and crude olein, refined bleached deodorized palm oil (RBDA OPO) and RBD olein to 6.5 percent from 0.3 percent respectively.
In addition, the government also decided to impose export duty on four types of CPO derivatives that were previously exempted from export duty.
The four CPO derivatives are crude stearin, RBD stearin, palm kernel oil (PKO), and RBD PKO which are now subject to 6.5 percent export duty each.
Boediono said the decision was aimed at safeguarding domestic supplies to produce cooking oil at affordable prices.
"We hope the decision will make the domestic price of cooking oil more stable," he said.
He said the government would regularly review its decision in tandem with fluctuations in global CPO prices.
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