ID :
24272
Tue, 10/14/2008 - 13:54
Auther :
Shortlink :
http://m.oananews.org//node/24272
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GAPKI CALLS ON GOVT NOT TO MAKE CPO EXPORT FEE AS INCOME TARGET
Jakarta, Oct 13 (ANTARA) - Palmoil producers have asked the government not to include crude palm oil export fee as its income target as the price of the commodity has been declining in the past few months.
"There should not yet be a target from a CPO fee. It must not be made one yet," the executive chairman of the Association of Indonesian Crude Palm Oil Producers (GAPKI), Derom Bangun, said after a meeting between the Indonesian Chamber of Commerce and Industry (Kadin) and the finance, the industry and the trade ministers here on Monday.
He said he feared if it was made a target, CPO exports would always be affected by fee imposition because of the government efforts to meet the income target set in the 2009 national budget.
He said the CPO price was now declining. In view of that he said GAPKI along with other palmoil industrialists grouped in the Associaion of Indonesian Cooking Oil (AIMMI), the Association of Indonesian Vegetable Oil Industries (GIMNI) and the Association of Indonesian Oleochemimcal Producers (APOLIN) were now discussing proposals on a basic price for the imposition of nil percent fee.
Derom said one of the proposals coming out of the discussion was if the price of CPO is under US$750 per ton, no fee would be quoted from exports.
He said under the current regulation a nil percent fee would only be imposed if the CPO price was below US$550.
"It is hoped there will be an agreement from the upstream and the downstream industry as well as farmers. We hope it can be higher than Malaysia. Indeed some proposed between US$700 and US$750 but it was not GAPKI's," he said.
He said in Malaysia a nil percent fee would be imposed if the CPO price is under US$640 per tons.
He said he hoped the government would change the price basis for the imposition of the nil percent fee in line with the price development.
"At those levels (like in Malaysia) producers enjoy no profit. In Indonesia production cost varies. Some can be efficient, while others cannot. So Malaysia is no comparison," he said.
"There should not yet be a target from a CPO fee. It must not be made one yet," the executive chairman of the Association of Indonesian Crude Palm Oil Producers (GAPKI), Derom Bangun, said after a meeting between the Indonesian Chamber of Commerce and Industry (Kadin) and the finance, the industry and the trade ministers here on Monday.
He said he feared if it was made a target, CPO exports would always be affected by fee imposition because of the government efforts to meet the income target set in the 2009 national budget.
He said the CPO price was now declining. In view of that he said GAPKI along with other palmoil industrialists grouped in the Associaion of Indonesian Cooking Oil (AIMMI), the Association of Indonesian Vegetable Oil Industries (GIMNI) and the Association of Indonesian Oleochemimcal Producers (APOLIN) were now discussing proposals on a basic price for the imposition of nil percent fee.
Derom said one of the proposals coming out of the discussion was if the price of CPO is under US$750 per ton, no fee would be quoted from exports.
He said under the current regulation a nil percent fee would only be imposed if the CPO price was below US$550.
"It is hoped there will be an agreement from the upstream and the downstream industry as well as farmers. We hope it can be higher than Malaysia. Indeed some proposed between US$700 and US$750 but it was not GAPKI's," he said.
He said in Malaysia a nil percent fee would be imposed if the CPO price is under US$640 per tons.
He said he hoped the government would change the price basis for the imposition of the nil percent fee in line with the price development.
"At those levels (like in Malaysia) producers enjoy no profit. In Indonesia production cost varies. Some can be efficient, while others cannot. So Malaysia is no comparison," he said.
