ID :
31601
Fri, 11/21/2008 - 23:57
Auther :
Shortlink :
http://m.oananews.org//node/31601
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GOVT TO HELP CPO INDUSTRY AT HOME: PRESIDENT
Rio de Janeiro, Nov 21 (ANTARA) - Prsident Susilo Bambang Yudhono said the government would help the domestic crude palm oil (CPO) industry against the threat of bankruptcy as a consequence of the sharp fall in the world CPO price.
"The problem is that state's tax income will decline if incentives are provided. Next year, there will be a problem with revenues but in the medium term or in one to four years' time, the lost income will be recovered. This is political economy," the president told the press here on Thursday (Friday in Indonesia).
He said he had taken a decision to accept smaller taxes in the short term in order to help the industry survive and to prevent new workers' layoffs.
Yudhoyono did not mention what kind of incentives the government would provide for the CPO industry at home.
The president said in the current global economic crisis the government would give priority to securing exports so that they would not be rejected abroad particularly with regard to the steep fall in prices in the world market.
"When the price of CPO was promising some time in the past, I met with CPO businesses day and night. It was not always easy to negotiate with them. We finally provided them with incentives and other types of taxes. When now the price of CPO is falling, we once again meet them, they asked the government to do something," the president said.
He said the government had taken steps to help oil palm farmers and help them solve their difficulties.
According to the president, when the CPO price in the world market was spiraling, Indonesia faced a cooking oil problem at home with commodity's price soaring to Rp8,500 per kg.
The sky-rocketing cooking oil price at home forced the president to convene CPO businessmen and ask them to give priority to the domestic market.
"But when now the CPO price is falling steeply, I will surely not create difficulties for businessmen. If businesses face difficulties, the people and state will also be in trouble," the president said.
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"The problem is that state's tax income will decline if incentives are provided. Next year, there will be a problem with revenues but in the medium term or in one to four years' time, the lost income will be recovered. This is political economy," the president told the press here on Thursday (Friday in Indonesia).
He said he had taken a decision to accept smaller taxes in the short term in order to help the industry survive and to prevent new workers' layoffs.
Yudhoyono did not mention what kind of incentives the government would provide for the CPO industry at home.
The president said in the current global economic crisis the government would give priority to securing exports so that they would not be rejected abroad particularly with regard to the steep fall in prices in the world market.
"When the price of CPO was promising some time in the past, I met with CPO businesses day and night. It was not always easy to negotiate with them. We finally provided them with incentives and other types of taxes. When now the price of CPO is falling, we once again meet them, they asked the government to do something," the president said.
He said the government had taken steps to help oil palm farmers and help them solve their difficulties.
According to the president, when the CPO price in the world market was spiraling, Indonesia faced a cooking oil problem at home with commodity's price soaring to Rp8,500 per kg.
The sky-rocketing cooking oil price at home forced the president to convene CPO businessmen and ask them to give priority to the domestic market.
"But when now the CPO price is falling steeply, I will surely not create difficulties for businessmen. If businesses face difficulties, the people and state will also be in trouble," the president said.
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