Indonesia responds to France's CPO tax plan

Republika/Wihdan Hidayat
Currently crude palm oil (CPO) is still the prime Indonesian export commodity. (illustration)
Rep: Satya Festiani/M Iqbal Red: Yeyen Rostiyani

REPUBLIKA.CO.ID, JAKARTA - Indonesian Palm Oil Board (DMSI) will seek explanation from French embassy in Indonesia regarding French Senate's approval to raise import tax on crude palm oil (CPO) by 300 percent. On the voting last week, 212 senators passed the proposal made by senator Yves Daudigny, while other 133 rejected.

"We will contact French Ambassador to follow up the decision," the Chairman of DMSI, Derom Bangun, said on Sunday.

The plan will raise the existing tax of 100 euro or 1.2 million IDR per tonnes to 400 euro. Daudigny proposal is aimed to encourage food manufacturers to use healthier alternatives to substitute the oil.

Bangun said the plan will affect the price of CPO as well as the industry using CPO. CPO is widely known as delicious oil that can enhance the quality of the products.

Before the proposal on raising import tax, there was a rule that forced the industries to place 'sans huile de palme' (without palm oil) label to its products. The rule hampered the industries using CPO.

 
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