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CPO Reference Price, OF, and Export Tax in December 2021 are US$ 375/ton



CPO Reference Price, OF, and Export Tax in December 2021 are US$ 375/ton

InfoSAWIT, JAKARTA – Crude palm oil (CPO) reference price to decide Out Fee (OF) in December 2021 is US$ 1.365,99/ton. It is more expensive about US$ 82,61 or increases 6,44% from November 2021 which was US$ 1.283,38/ton.

It is written in the Regulation of Minister of Trade No. 68 / 2021 about Export Tax Decision on Out Fee for Agricultural and Forestry Products.

General Director in duty of Foreign Trade, Ministry of Trade, Indrasari Wisnu Wardhana said, CPO reference price is much more than threshold which is US$ 750/ton. The government should decide CPO OF, US$ 200/ton in December 2021. 

CPO OF in December 2021 refers to Column 12, Attachment I, C, Regulation of Minister of Finance No. 166/PMK.010/2020 which is US$ 200/metric ton (MT). The numbers do not change from CPO OF in November 2021.

Indrasari Wisnu Wardhana also mentioned, the increasing CPO reference price happens for some factors, such as, the high CPO demands, and increasing consumption after Chinese’s economic recovery, and crude oil increasing price which substitute crude oil material to be biofuel.

“Other factors are, the better dollar to pound sterling, Malaysia’s CPO production also significantly decreases because of lack of workers, namely harvesters,” she said, as in the official statement InfoSAWIT, Tuesday (30/11/2021).

CPO export tax that Palm Oil Plantation Fund Management Agency (PFMA) manages according to Regulation of Minister of Finance No 76/PMK.05/2021, in December 2021, based on CPO reference price decided by Ministry of Trade, the tariff includes in more than US$ 1.000/tons, which is, CPO export tax should be US$ 175/ton.

It means, in December 2021 if the two taxes are combined, the total export tax and OF are US$ 375/ton. According to what InfoSAWIT calculated, OF and export tax from CPO decreased CPO price about 27,5%. (T2)