The government pays serious attention and remains committed to supporting the oil palm plantation sector as one of the national strategic commodities, where various policies have also been established to support this. One of the policies implemented is the determination of the Export Levy (PE) to US$0/MT which has been in effect since July 15, 2022. Responding to the latest CPO price conditions, the Steering Committee of the Palm Oil Plantation Fund Management Agency (BPDPKS) held a hybrid meeting, Monday (31/03). 10), led by the Coordinating Minister for Economic Affairs Airlangga Hartarto. In the meeting it was decided that PE US$0/MT will be continued as of November 1, 2022 at 00.00 WIB. This policy was implemented because the Market Index Price (HIP) of Biodiesel is lower than that of HIP Solar, so there is no biodiesel incentive payment yet. Therefore, the PE tariff of US$0/MT was extended until the CPO reference price was greater than US$800/MT. “We maintain this incentive, the tariff of US$0/MT is extended until the reference price is greater than or equal to US$800/MT. Because now the price is still around US$713/MT, so the PE rate of US$0/MT is valid until December. But once the price rises to US$800/MT, the US$0/MT PE tariff will not apply,” said Coordinating Minister Airlangga.
The adjustment to the export levy tariff scheme is expected to have a fair and appropriate effect on the distribution of added value generated from the domestic palm oil industry chain. The levies collected from exports are managed and redistributed to focus on developing the smallholder palm oil industry. The availability of funds from export levies can increase independent smallholders' access to funding for improving plantation productivity and bring their businesses closer to sectors that provide added value. In addition, the Meeting also decided to accelerate the realization of the People's Palm Oil Replanting Program (PSR) with several things that need to be followed up, namely further discussions will be carried out through a technical team involving the Coordinating Ministry for Economic Affairs, Ministry of Agriculture, Ministry of Agrarian Affairs and Spatial Planning/Land Agency. National and the Ministry of Environment and Forestry, and BPDPKS as well as encouraging the planting of intercrops on PSR land which includes corn, soybeans and sorghum as part of the food security program. Related to this PSR, improvements also need to be made so that the difference in the price of FFB from partner and non-partner planters is getting smaller and the next Coordination Meeting for Comrah specifically for PSR is carried out in mid-November so that PSR planning can be obtained within the framework of planting intercropping in December 2022.
