CPO Export Ban Makes State Revenue Reduced, Jokowi: Meet People’s Needs More Important
President Joko Widodo while providing social assistance to traders at Sukasari Market, Bogor (21/4/2022). (Source: Instagram @jokowi ) Author : DINA KARINA | Editor : FIRDAUS FAITH
JAKARTA, KOMPAS.TV- President Joko Widodo admits the amount of income countries obtained from exports of crude palm oil or CPO, as well as derivative products.
He is also aware that the ban on the export of cooking oil raw materials will reduce state revenue. However, according to Jokowi, meeting the needs Peoples staples, one of which is cooking oil, is much more important.
He conveyed this when he reiterated the prohibition on commodity exports that was on Wednesday (27/4/2022) last night.
Once domestic needs have been met, of course I will lift the export ban because I know the country needs taxes, the country need foreign exchange, the country needs a trade balance surplus, but meet The peoples basic needs are a more important priority, he said Jokowi.
COOKING OIL DIFFICULTY, I WILL NOT LET
For information, exports of CPO and its derivative products provide Income to the state includes export duties and funds export levies from the Palm Oil Plantation Fund Management Agency (BPDPKS).
The export ban will also create a surplus in Indonesias trade balance become thin. This is because palm oil is a commodity Indonesias leading export. The portion of the export value of this commodity is the largest compared to other commodities, namely reaching 13.01 percent of Indonesias total non-oil and gas exports in 2021.
The Indonesian Palm Oil Association (Gapki) noted that the increase in palm oil export volume in 2021 compared to 2020 is only 0.6 percent. Meanwhile, the export value in 2021 will reach 35 billion US dollars or around Rp. 500 trillion (assuming an exchange rate of Rp. 14,300).
ON THE TREE
The value of palm oil exports in 2021 is 52 percent higher than the value of exports in 2020 which amounted to 22.9 billion US dollars. Whereas According to data from the Central Statistics Agency, the export value of palm oil is 32.8 billion US dollars.
