Ministry of Industry Guaranteed to Smooth CPO Exports by Policies

Ministry of Industry Guaranteed to Smooth CPO Exports by Policies

InfoSAWIT, JAKARTA – Ministry of Industry and related ministries/institution tried to smooth crude palm oil (CPO) and its derivative exports, including palm cooking oil by prioritizing the domestic stock through Minyak Goreng Curah Rakyat (MGCR) program.

To support it, Ministry of Industry developed Sistem Informasi Minyak Goreng Curah (SIMIRAH). Until now, SIMIRAH 2.0 covers CPO producers, palm cooking oil producers, distributors, retailers, and the transaction in the consumers. The system becomes one traceability to fulfill the domestic needs as the condition to conduct exports.

There is coordination in CPO derivative products. The export permit would be determined by export approval which Ministry of Trade published. In this case, Ministry of Industry would update the data realization of MGCR distribution as the basic data to get export approval. “The numbers would be recapped and approved by related ministry/institution as the quota numbers for each company,” Minister of Industry, Agus Gumiwang Kartasasmita said, as in the official statement to InfoSAWIT, Monday (18/7/2022).

Besides palm oil exports would be accelerated by Flush Out mechanism or paying special tariff levy based on the Regulation of Minister of Finance (RMF) Number 102/2022 by the CPO exporters and / or palm oil cooking exporters which have no rights to export from palm cooking oil distribution. Then, delivering temporarily relaxation on export citation tariff to be US$ 0/metric ton since 15 July to 31 August 2022, and diverting export rights among the companies.

Agus continued, the government escalated the multiplier numbers which was 1:3 in the first to be 1:5 and then to be 1:7. It means, one palm cooking oil realization in the domestic, a company has its export rights to be converted into seven times.

Prior General Director of Agro Industry, Ministry of Industry, Putu Juli Ardika said, in one decade, palm oil derivative exports significantly increased from 20% in 2010 to be 80% in 2020. “This is the same target with the road map of downstream palm oil development which is regulated in the Regulation of Minister of Industry Number 13 / 2010,” he said.

In the 2045 downstream vision, Indonesia targeted to be the center of palm oil downstream producer and consumer in the world to be able as price setter of CPO globally. (T2)