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Indonesia to persuade French govt to lift hefty tax on CPO imports

JAKARTA ( – The French government to impose hefty (regression) tax on imported crude palm oil (CPO) has raised concerns among Indonesian CPO exporters.

On Tuesday (Feb.2), the country’s major CPO producers and Indonesian Palm Oil Producers Association (GAPKI) met with President Joko Widodo to voice their concerns. The association voiced their concerns over ‘black-campaign’ launched by western nations and NGOs against Indonesian CPO producers.

Executive Director of GAPKI Fadhil Hasan said a delegation will be sent to France on Feb. 8 to persuade French government to lift the hefty import tax. The team is scheduled to meet key stakeholders in France.

The government will also sent envoy to Malaysia and African countries to join hands to pressure the French government over the tax issue.

Indonesia accused the French government of imposing discriminated policy as the policy does not apply to other vegetable oils such as soybean, rapeseed and others.

French government plans to raise import tax to 300 euro per ton in 2017, 500 euro per ton in 2018, 700 euro per ton in 2019 and 900 euro per ton in 2020.

The Head of Gapki Joko Supriyono said Indonesia’s CPO exports reached average 26 million tons per year. He expects the mandatory use of biofuel (B-20) will help increase domestic demand for biodiesel.

Industry Minister Saleh Husin said the government is supporting the palm oil industry given its contribution to the national economy. Last year, CPO exports reached US$18.6 billion, lower compared to US$21.7 billion in previous year. The industry employs around 6 million workers. (*)




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