03 Feb 2016
"Parliament is discussing it still and no decision has been made because there will be the debate at the National Assembly on the 15th of March," Ambassador Corinne said after signing the Joint Declaration for the Nusantara Programme at the Higher Education Building in Senayan, Jakarta, Tuesday.
Ambassador Corinne said the Indonesian and French governments will still be able to discuss the plan to impose taxes as stipulated in the biodiversity bill before it is decided after the French National Assembly meeting on March 15.
According to her, the reason the French government wants to impose progressive taxes on all palm oil products is to equalize them with taxes on other oil products such as olive oil and sunflower oil.
In addition, palm oil tax is considered too low, especially given its cultivation damages the ecosystem and causes deforestation.
The ambassador also denied that the tax would only be applicable to Indonesia.
"This decision is not just for Indonesia, but for any country producing palm oil," he said.
Previously, the French Senate had approved the biodiversity bill on January 21.
The bill contains plans to impose taxes on palm oil production, starting from 2017 and broken down as follow: 300 euros per ton for 2017, 500 euros per ton for 2018, 700 euros per ton for 2019 and 900 euros per ton for 2020.
Indonesia is currently being charged 103 euros per ton on palm oil.
Specifically for palm oil used in food products, the bill states that an additional import duty of 3.8 percent will be added. Meanwhile palm kernel oil used for food products will be charged 4.6 percent in import duty.
Indonesia, through its Trade Ministry, Industry Ministry and Agriculture Ministry, will attempt diplomacy with the French government regarding the bill.
Editor: Ruslan Burhani
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