23/06/2011 (Bernama) - The government has raised export tax on crude palm oil for July to 20 percent from 17.5 percent for June, citing a rise in the average price of the commodity in the global market, Antara news agency reported.

The reference price of CPO for July shipment is US$1,096 per tonne, Director General of Foreign Trade at the Trade Ministry Deddy Saleh said in a short message text on Wednesday.

He said the export reference prices of CPO derivatives for July such as crude olein were set at US$1,174 per tonne, RBD palm olein US$1,181 per tonne, RBD palm kernel olein US$1,194 per tonne and crude stearin US$1,073 per tonne.

Meanwhile, the export reference prices of crude palm kernel oil, crude kernel olein and crude kernel stearin were set at US$1,852 per tonne, RBD palm kernel oil US$1,833 per tonne, RBD palm oil US$1,175 per tonne, RBD palm stearin US$1,080 per tonne, and RBD palm kernel stearin US$2,199 per tonne.

The government also set the export reference prices of RBD palm oil in 25-kg pack at US$1,181 per tonne and biodiesel oil at US$1,245 per tonne.

Under Regulation of the Finance Minister No. 67 of 2010 effective April last year, export tax on CPO is set on a progressive basis by observing the international prices.

However, many CPO producers had lodged objections to the scheme, prompting the government to revise it including the method of setting reference prices, the minimum limit of reference price, and the maximum limit of export tax.

Indonesia is the world`s largest CPO producer, with CPO exports in the January-April 2011 reaching US$2.34 billion.