FFB Could be Cheaper after Export Tax Increases

FFB Could be Cheaper after Export Tax Increases

InfoSAWIT, JAKARTA – Prior to anticipate palm cooking oil gets more expensive, the government finally decided to increase export tax that Palm Oil Plantation Fund Management Agency (PFMA) manages according to Regulation of Minister of Finance (RMF) Number 23 / 2022. This will impact to many smallholders namely the independent ones.

Serikat Petani Kelapa Sawit (SPKS) questioned why the government did increase export tax that will be a loss for the smallholders. Crude palm oil (CPO) is the reference price to calculate fresh fruit bunch (FFB) that local plantation agencies in Indonesia should calculate. It means, if CPO tax gets higher, smallholders will sell their FFB cheaper.

As the illustration, if the latest CPO export tax, according to RMF Number 23/PMK.05/2022 and as SPKS predicted, the smallholders will get cheaper FFB about Rp. 600-700/kg.

General Secretary of SPKS, Mansuetus Darto urged the government to revoke the tax. He thought, the government spent tons of money to subsidize biodiesel mandatory program (B30). That is why it needs to reduce B30 to be B20 to get surplus fund.

Besides, there will be lots of material if the program gets lower to be B20 and the palm oil fund could solve palm cooking oil issue. About the left fund in PFMA in 2015 – 2021 about Rp 138 billion, which reached Rp 22 billion, he continued, the fund could be used to every program that has something to do with smallholders, such as, implementing replanting program. (T2)