Flash News
infosawit

CPO Export Levy Deletion Needs the Same Commitment



CPO Export Levy Deletion Needs the Same Commitment

InfoSAWIT, PALEMBANG – In this recent days, Ministry of Finance published the Regulation of Minister of Finance (RMF) Number 115/PMK.05/2022 about the Substitution of RMF Number 103/PMK.05/2022 about Public Service Obligation on Palm Oil Plantation Fund Management Agency (PFMA) in Ministry of Finance.

In the revision, export citation (levy) which PFMA manages for every crude palm oil (CPO) product and its derivative would be zero.

Many stakeholders in South Sumatera Province understood the temporary deletion, namely the smallholders which reached 224.549 families. It is hoped, the policy would escalate fresh fruit bunch (FFB) price in plasma and independent smallholders.

Analysis of PSP Madya Plantation Agency of South Sumatera Province, Rudi Arpian said, the moment should be taken by the mills to empty their full CPO tanks. “The smallholders’ FFB purchase depend on the smooth exports,” he said in Whatsapp that InfoSAWIT got, Monday (18/7/2022).

He also mentioned, if CPO stocks are much, the storage tanks are full, this would postpone the better FFB price. CPO and its derivative export volume in 2021 reached 2,5 to 3 million tons/month, or about 34 million tons per year in total from the production that reached 49.71 million tons.

“June 2022 stocks reached about 6,3 million tons nationally,” he said.

The peak production in July – December 2022 could produce about 4,49 million tons which consist of CPO and crude palm kernel oil (CPKO) per month. To smooth smallholders’ FFB purchase, it needs the same commitment. At least, there are about 1,5 months as window of opportunity to get the export done.

“The standard operational procedure has been regulated. No reason to postpone the export. At least, CPO stock should be 3-4 million tons per month in national scale not to pile up CPO stock and postpone to escalate smallholders’ FFB price,” he said. (T2)


READ MORE ON GOOGLE NEWS.