26-27 Aug, 2015 - Bali, INDONESIA
The Westin Resort Nusa Dua, Bali
The Westin Resort Nusa Dua, Bali
The Indonesian government has launched the Plantation Fund Management Agency that will be responsible for tax collection from palm oil companies and management of crude palm oil fund.
Also called the CPO Fund Agency, the body has started collecting CPO export levy from palm oil companies since July 16, 2015. The collections will be used to support Indonesia’s palm oil sustainability development program, especially biodiesel production in the country.
It’s estimated that the agency will collect approximately Rp10 trillion ($751.88 million) per year. In 2015 alone, the fund is expected to collect CPO export levy of around Rp4.5 trillion from local producers. The collection will be used to replant 2,000 hectares of palm oil plantations in Indonesia.
These replanting programs are aimed at augmenting Indonesia’s biodiesel production by up to 5.2 million kiloliters annually. This year, the fund agency targets to supply 2 million kiloliters in the market through state-run energy company PT Pertamina.
Indonesia has about 4 million hectares of traditional palm oil farms producing only an average of 2.5 tons of palm oil per hectare whereas the plantations owned by big corporations produce over 5 tons of palm oil per hectare of plantations.
Indonesia’s biodiesel consumption in 2015 is slated to amount to 3.5 million kiloliters, which is much lower than the original target of 5.3 million kiloliters.
A new CPO law passed earlier this year imposes a levy on all CPO exporters even when the CPO price is below $750 per metric ton.
A presentation on ‘Biodiesel Industry Outlook in Low Crude Environment’ will be given by Togar Sitanggang, Secretary General, Indonesian Association of Biofuel Producers (APROBI) at 3rd Oleochemicals Outlook on 26-27 August, 2015, in Bali, Indonesia.
Contact Ms. Grace at grace@cmtsp.com.sg or call +65 6346 9147.
