InfoSAWIT.com - The reference price for crude palm oil, or CPO, set for export duties for the July 2021 period is $1,094.15/MT. The reference price fell by $129.75 or 10.60 percent from the June 2021 period, which was $1,223.90/MT.
This change is stated in the Regulation of the Minister of Trade Number 43 of 2021 concerning the determination of export benchmark prices (HPE) for agricultural and forestry products subject to export duties.
“The decline in the CPO reference price was influenced by the lockdown policies carried out by Malaysia and India, while the decline in the reference price and HPE for cocoa beans was due to the abundance of global cocoa supplies. This decrease has no impact on the export duties for cocoa beans, which is still 5 percent,” said Plt. Director General of Foreign Trade, Indrasari Wisnu Wardhana, in a written statement received by InfoSAWIT, on Friday.
Additionally, Wisnu said that the decision is listed in Column 2 Attachment I Letter B of the Minister of Finance Regulation No.166/PMK.010/2020. Currently the CPO reference price has been lowered but is still above the threshold of $750/MT. For this reason, the Government imposed a CPO export duty of $16/MT for the period of July 2021.
CPO export duty for July 2021 refers to Column 8 Attachment I Letter C Regulation of the Minister of Finance No. 166/PMK.010/2020 of $116/MT. This value decreased by $67 from the CPO export duty for the June 2021 period of $183/MT.
Meanwhile, palm oil levies managed by the Palm Oil Plantation Fund Management Agency (BPDP-KS) are included in the tariff group above US$ 1000/ton, namely the palm oil levy imposed as much as US$ 175/ton.
For the period of July 2021, when combined in total the policies between export levies and export duties on CPO, which are imposed on export products of crude palm oil will be $291/ton. Referring to InfoSAWIT's calculations, the total palm oil levies and CPO export duties shaved the price of crude palm oil by around 26 percent. ***