Jakarta Details Programmes to Boost Palm Exports
Indonesia issued two regulations on June 8 aimed to spur palm oil and related product exports, clear inventories, as well as stabilise production and prices for palm fresh fruit bunches, which have been pressured by months of prohibitive export policies.
The export permits for 1 million t of crude palm oil (CPO), refined, bleached and deodorised (RBD) palm oil, RBD palm olein and used cooking oil (UCO) will be granted initially under an acceleration programme, and further volumes may be added later according to demand, the country's trade ministry said. Cargoes shipped out under this scheme will not be subject to domestic market obligation (DMO) rules but will incur an extra export duty. Applicable rates have not yet been announced by the finance ministry.
Exporters must give details of their filled tank capacity when applying to take part, which the government will use to allocate volumes between companies.
The programme will run until July 31, but applicants that have already been approved may still export after this date. Export permits will be valid for one month and will be non-transferable.
Indonesia, on the same day, formalised a rule allowing companies to transfer export permits obtained by fulfilling the DMO to another party. Permits can only be transferred once. The Ministers are currently holding a networking event to facilitate business partnerships between palm oil producers and other obligated companies so that more small-scale exporters can meet DMO requirements.
Source: Argus
