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Indonesian government mulls hiking crude palm oil
calendar09-11-2002 | linkNULL | Share This Post:

JAKARTA, Nov 7, 2002 (Xinhua) -- The Indonesian government said it mullsincreasing the export duty on crude palm oil (CPO), the raw material forcooking oil, during the current festive season, as a step to meet theneeds of local processing plants.Minister of Industry and Trade Rini M.S. Suwandi said an increase inexport duty would help limit the export of the commodity and thus ensureits availability to local cooking oil producers, the daily Jakarta Postreported here Thursday.The measure would also in turn ensure stable cooking oil prices during theIdul Fitri, the end of Ramadan, which started Wednesday, as well asChristmas festivals.However, the minister said that the government would not raise the duty iflocal CPO producers agreed to ensure sufficient supplies for localprocessing plants. If, conversely, the CPO producers could not guaranteesupplies, the government would hike the export duty, he said.Currently, the Indonesian government imposes a three percent tax on CPOexports, and a one percent tax on refined, bleached and deodorized palmolein exports.Indonesia is the second largest CPO producing country following Malaysiain the world. The country has set a target of producing about nine milliontons of CPO this year, up from last year's 8.3 million tons. Of the totaloutput, about 5.5 million tons are stocked for exports.Indonesia's CPO producers have been increasing their exports in the lastseveral months in view of the steady increase of international prices ofthe commodity.