Indonesia to discuss palm oil tax in Europe

Indonesian Government will visit countries in Europe on December to discuss the European prospect ofincreasing tax on crude palm oil. (illustration)/Antara/Feri

REPUBLIKA.CO.ID, JAKARTA - Indonesian Government will visit countries in Europe on December to discuss the plan of raising import tax on crude palm oil (CPO). Government would visit two biggest importers of Indonesian CPO, France and Netherlands, Vice Minister of Trade Bayu Krisnamurthi said.

Earlier, French senator Yves Daudigny proposed to raise import tax on CPO by 300 percent to encourage food manufacturers to use healthier alternatives to substitute the oil. "Finally, the proposed tax is declined," Krisnamurthi said on Wednesday.

Data in Ministry of Trade says Europe imports 4.5 million tonnes of CPO from several countries, such as China and India. Indonesia imports 1.5 to 1.8 million tonnes.

On the meeting with officials in France and Netherlands, Indonesia will prove that the CPO is environmental friendly. As many as eight million tonnes (30 percent) of the total production of CPO (22 million tonnes) per year has Indonesia Sustainable Palm Oil (ISPO) certification.

Indonesia targets 100 percent certification by 2017. He admitted that some palm oil was not sustainable.

Director Roundtable on Sustainable Palm Oil (RSPO) Indonesia, Desi Kusumadewi, said only 700,000 hectare palm plantation in Indonesia were certified by RSPO. It means that 90 percent has not been certified.

Editor: Yeyen Rostiyani
Reporting: Dwi Murdaningsih/Satya Festiani
Source: Antara