CPO reference price weakening

Jakarta (ANTARA News) - The Ministry of Trade has set the Reference Price of Crude Palm Oil (CPO) for November 2017 at US$737.59 per metric ton (MT), weakening by US$2.51 or 0.34 percent from the previous month.

Oke Nurwan, Director General of Foreign Trade of the Ministry of Trade, said the decision was taken by the government after taking into consideration various recommendations and imposing a CPO exit duty of zero dollar per metric ton.

"Currently, the CPO reference prices are weakening and remain at levels below $750. Therefore, the Government imposes a zero dollar exit duty per metric ton for the period of November 2017," Oke remarked, in a written statement received, Friday.

Such stipulation is contained in the the Minister of Trade Regulation No. 80 of 2017, concerning the Fixing of Export Benchmark Price (HPE) on Agricultural and Forestry Products Subject to Export Duty.

The CPO exit duty for November 2017 is listed in Column 1 of Attachment II Letter C of Minister of Finance Regulation No. 13/ PMK.010/2017, amounting to zero dollar per metric ton. The value is the same as the CPO exit tax for the period of October 2017.

Meanwhile, the reference price of cocoa beans in November 2017 experienced a gain of $94.01 or 4.82 percent, from the previous $1,950.85/MT to $2,044.86/MT.

This has an impact on the HPE for cocoa beans that also strengthened by $92 or 5.49 percent, from $1,677 US dollar/MT to 1,769 US dollars/MT in November 2017.

The reinforcement of reference prices and HPE cocoa beans is caused by the rising international prices. The reinforcement has impacted cocoa beans exit duty to 5 percent. It is mentioned in column 2 of Attachment II Letter B of Minister of Finance Regulation No. 13 PMK.010/2017.

For HPE and exit duty of wood products and leather products, there is no change from that in the previous month period.

Source: ANTARA News

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