CPO reimposed export charge in May 2016

"The current CPO reference price is above the threshold for the first time since October 2014 that is at the level of US$750. Hence the government imposes the CPO Export Tax of US$3/MT for the period of May 2016," Acting Director General of Foreign Trade at the Trade Ministry, Karyanto Suprih, said in a press release received on Sunday.

The CPO price has increased by US$71.78 or 10.52 percent from April 2016 which was at 682.32 per MT. The stipulation is stated in the Trade Minister Regulation Number 29/MDAG/PER/4/2016 on the Stipulation of Export Reference Price (HPE) on Agricultural and Forestry Products Subject to Export Tax.

"HPE and reference price for the period of May 2016 is stipulated after the development of the commodity price, both nationally and internationally," Karyanto said.

Karyanto explained that the increase in the current CPO reference price is due to the strengthening international price for the commodity. The CPO Export Tax for May 2016 is stated in Column 2, attachment of PMK 136 Year 2015, at US$3/MT, has shifted 1 column from the period of April 2016 of US$0/MT.

Meanwhile, the reference price for cocoa beans in May 2016 has weakened by US$41.91 or 1.4 percent that is from US$2,992.02/MT to US$2,950.11/MT, resulting in the establishment of HPE for cocoa beans that also experienced decline of US$41 or 1.5 percent from US$2,692/MT in the period of April to US$2,651/MT.

The decline in reference price and HPE for cocoa beans was caused by decreasing international price of the commodity. However, the Export Tax for cocoa beans remains unchanged from the previous period, which is at 10 percent and stated in Column 3, attachment II PMK 75 Year 2012.

No changes occurred in HPE and Export Tax for timber and leather products from the previous period.