Government Studies Oil Palm Restriction Plan
Wednesday, 31 January, 2007 | 15:58 WIB

TEMPO Interactive, Jakarta: The government has asked that the plan to increase levies or export restrictions on crude palm oil (CPO) be observed comprehensively.

Up until today, the Department of Finance is still examining the plan.

According to Hatanto Reksodiputro, Secretary General of the Department of Trade, CPO prices on the international market are now high.

As a result, many manufacturers have sold CPO abroad.

Exports will be reduced by increasing levies or restrictions.

“Do not look at the increase, but at the attention that the government is paying to biofuel development,” he said yesterday (01/30).

Agriculture Minister Anton Apriyantono has said that oil palm and palm oil production management must not use methods that involve increasing levies on exports.

According to him, other policies can still be issued to save plantations and processing industries.

“So, export levies are not essential,” said Anton.
Some oil palm producers said they were worried if the government restricted CPO exports by setting quotas or increasing levies.

Should the plan be carried out, it would decrease exports and farmers' oil palm prices will drop.

Today, the CPO export levy is 1.5 percent of the export benchmark price.

RR ARIYANI | EWO RASWA