Sunday 07 August 2022

Indonesia: cocoa beans reference price weakens, CPO rises, export duty unchanged

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JAKARTA, Indonesia– After taking into account various recommendation, the Indonesian Ministry of Trade has determined the reference price of CPO for the determination of the Export Duty (Bea Keluar/BK) for the month of November 2015 at USD 594.16/MT on Tuesday (27/10).

This reference price is an increase of USD 64.65 or a 12.2% increase from the month of October 2015, which was at USD 529.51/MT.

This determination of the reference price is written in the Minister of Trade Regulation Number 92/M-DAG/PER/10/2015 concerning the Determination of Export Benchmark Price (HPE) for Dutiable Agriculture and Forestry Products.

So was asserted by the Acting Director General of Foreign Trade, Karyanto Suprih, on Friday (30/10).

Karyanto explained that the current low Reference price for CPO was caused by the weak international price for said commodity.

“This was caused by the increasingly dropping price of world oil and the oversupply of vegetable oil in international markets, particularly for vegetable oil from other sources as competitor to CPO,” said Karyanto.

The Export Duty of CPO for the month of November 2015 remains unchanged or the same as the Export Duty of CPO for the period of October at USD 0/MT. This is stated in Column 1 of the appendix of Minister of Finance Regulation 136 Year 2015.

“The current CPO Reference Price is still below the threshold level for the imposition of Export Duty, set at the level of USD 750, which makes the Export Duty remain unchanged at USD 0/MT for the period of November 2015 for CPO and its Derivative Products,” explained Karyanto.

Meanwhile, the reference price of cocoa beans for the stipulation of the HPE of cocoa beans experienced a USD 15.65 decline or 0.5% from USD 3.175.92/MT to USD 3.160.27/MT.

This has caused the stipulated HPE of cocoa beans to also drop, namely by USD 16 or 0.56% from USD 2,872/MT in the period of October to USD 2,856/MT. The drop in the reference price and HPE price of cocoa beans was also caused by the weakening of international prices for said commodity.

Nevertheless, the BK for cocoa beans remained unchanged from the previous month at 10%. This is written in in column 3 of appendix II of Minister of Finance Regulation 75 Year 2012.

As for the HPE and Export Duty of wood products and leather products, they remain unchanged from the previous month. Minister of Trade Regulation Number 92/M-DAG/PER/10/2015 can be downloaded at: http://jdih.kemendag.go.id/id/regulations.

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