In April 2022 CPO Tax and Citation Are US$ 575/ton

In April 2022 CPO Tax and Citation Are US$ 575/ton

InfoSAWIT, JAKARTA – Crude palm oil (CPO) reference product to decide Out Fee in April 2022 is US$ 1.787,50/metric ton (MT). It is more expensive US$ 355,26 or 24,80% than it in March 2022, which was US$ 1.432,24/MT. It is written in Regulation of Minister of Trade Number 15 / 2022 about Expor Reference Price on Agricultura and Forestry Product that Have Out Fee.

“CPO reference price is beyond the threshold at US$ 750/MT. The government decided that CPO Out Fee is US$ 200/MT in April 2022,” General Director of Foreign Trade, Ministry of Trade, Indrasari Wisnu Wardhana said, as in the official statement to InfoSAWIT.

CPO Out Fee in April 2022 refers to Colom 12 Attachment I, C Regulation of Minister of Finance Number No. 1/PMK.010/2022 which is US$ 200/MT. The numbers have no change from CPO Out Fee in March 2022.

Ministry of Trade mentioned, the increasing CPO reference price happened for some factors, such as, the increasing world demands but limited CPO supplies because of the increasing percentage of domestic market obligation that becomes 30% in Indonesia.

It also happened for the increasing sunflower oil and soybean price because of war in Russia and Ukraine and the decreasing harvest; and the worry of vegetable oil in Asia, namely in India. This leads India extend to decrease vegetable oil incoming tax until 31 September 2022.

Meanwhile CPO export citation that Palm Oil Plantation Fund Management Agency (PFMA) manages, according to the Regulation of Minister of Finance Number 23 /PMK.05/2022 in April 2022, referring to CPO reference price decision that Minister of Trade decided, is categorized to be more than US$ 1.500/MT, which is, CPO tax should be US$ 375/MT.

In April 2022, if combined totally, between CPO citation and Out Fee, it reaches US$ 575/MT. InfoSAWIT calculated, the two policies would cut of CPO price about 33%.  (T2)