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Two Policies Would Accelerate Palm Oil Downstream Sectors, Escalate Refinery Capacity to Realize 75 Million tons



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Two Policies Would Accelerate Palm Oil Downstream Sectors, Escalate Refinery Capacity to Realize 75 Million tons

InfoSAWIT, JAKARTA – There have two policies to accelerate palm oil downstream industrial development in Indonesia, they are, progressive tax rate fiscal policy which is adjustable with industrial supply chain; and tax incentive for new investment or oleofood, oleochemical, and biofuel industrial sector expansion.

“The two policies would be very effective to encourage palm oil downstream sectors,” General Director of Agro Industry, Ministry of Industry, Putu Juli Ardika said, as in the official statement to InfoSAWIT in Jakarta, Monday (14/8).

Putu also explained that in its history, palm oil downstream industries have been consistently running since 2007. In the year, crude palm oil export reached about 60 percent of total exports nationally. In fact, CPO is used as food, non-food, and biofuel materials in many countries. It means, this country did not get additional value too much.

“Through export tax policy that is pro-industrial oriented, palm cooking oil, oleofood, oleochemical, and biodiesel industries significantly escalated,” he said. in 2010, refinery industries reached about 25 million tons but through downstream policy, the refinery industries increased triple to be 75 million tons in 2022.

“Biodiesel industries now reach 17,5 million tons per year. Oleofood industries could be 2,7 million tons per year, oleochemical industries could be reaching 11,6 million tons per year. These good achievements are the consistent policy implementation to downstream industries in a very long period,” Putu said. (T2)


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