Madagascar Runs Free Tax for CPO and Its Derivative to Fulfill the Stocks

Dok. Istimewa
Madagascar Runs Free Tax for CPO and Its Derivative to Fulfill the Stocks

InfoSAWIT, JAKARTA – The Government of Madagascar decided not to have safeguard of measure or Bea Masuk Tindakan Pengamanan (BMTP) on edible vegetable oils and margarines including from Indonesia.

It is regulated in the notification of the Government of Madagascar to World Trade Organization (WTO) on 17 December 2021. Minister of Trade Indonesian Republic, Muhammad Lutfi appreciated what the Government of Madagascar did and it is the right decision.

“The decision not to have BMTP on edible vegetable oils and margarines could increase vegetable oils and margarine competition from Indonesia in the country. The decision of Madagascar reflected that if BMPT runs, the products would be difficult to get into the country,” Minister Lutfi said, as in the official statement to InfoSAWIT recently.

The Government of Madagascar initiated the safeguard investigation on 14 August 2019. The products in investigation were in code HS 15079000, 15071010, 15089000, 15091010, 15099000, 15100000, 15111011, 15111091, 15119000, 15121110, 15121900, 15122110, 15122900, 15141100, 15141110, 15141900, 15149110, 15149900, 15171000, 15179010, 15179090, and 15180000.

Lutfi continued, Indonesia is one main palm oil exporter of the products to Madagascar. Vegetable oil products in palm oil – base and margarines from Indonesia became the main preferences for the people of Madagascar. “The access to qualified vegetable oil products and margarine is the essential indication that the people of Madagascar need available product supports in their country,” he said.

Meanwhile General Director in duty of Foreign Trade Ministry of Trade, Veri Anggriono Sutiarto said, if BMTP does not run, a product could be competing in the export countries. “Indonesia should take it as advantage because the products from Indonesia have strong competition in Madagascar,” Veri said.

According to Central Bureau of Statistic, the trade between Indonesia and Madagascar increased in the past few years. For instance, in 2021, the total trade between the two countries reached US$ 100,68 million from the previous year which reached about US$ 72,10 million. In January – March 2022 the two countries managed the trade up to US$ 67,48 million compared to the same period in 2021 which reached US$ 21,31 million.

Director of Trade Security Ministry of Trade, Natan Kambuno mentioned, this is the positive result between both stakeholders in the two countries for not implementing BMPT.

“The collaboration among Ministry of Trade and other related ministry/institution, association, and other stakeholders could become the successful thing for Indonesia because BMPT does not run to edible vegetable oils and margarine. Indonesia successfully convinced the Government of Madagascar that safeguards investigation which has been running is not the same with the General Agreement on Tariffs and Trade (GATT) 1994 and other regulations in WTO, in this case, the Agreement on Safeguards (AoS),” Natan mentioned. (T2)