Indonesia crude palm oil exports up 19.23 percent in June

Indonesia`s crude palm oil exports in June rose 19.23 percent to US$798.4 million from US$669.6 million in May, according to the Central Bureau of Statistics (BPS).
`The exports mainly went to China and Singapore,` BPS chief Rusman Heriawan said here on Wednesday.

The rise in CPO exports was the highest among various export commodities in the month. It was followed in second place by nickel (US$72.3 million) and organic chemicals (US$46.9 million).

Because of the increase in CPO exports the domestic price of cooking oil had gone up by around 1.7 percent to Rp10,183 per liter contributing 0.02 percent to inflation.

Economic observer Poltak Hotradero told ANTARA the rise in CPO exports had proven that the imposition of a higher export tax (PE) on the commodity was ineffective.

He said exporters already conducted exports before the PE hike was imposed on June 15 as an anticipatory measure. This may be followed by a drop in exports in the following months because the quota had already been taken.

Poltak said increasing CPO smuggling had contributed to the rise in the domestic price of cooking oil.

`The PE policy has not been effective and has even encouraged people to smuggle more of the commodity out of the country. The largest CPO producers in Indonesia are in Riau and North Sumatra which are close to Batam so that it is easy for them to reach their customers in Singapore and China,` he said.(*)

Source: ANTARA