APCASI Asks Palm Oil Export Drop to Decrease

INDUSTRY.co.id - Jakarta - The Indonesian Palm Shell Entrepreneurs Association (APCASI) asked the government to lower the export duty on palm shell since not all the palm shells can be utilized domestically.

"Of the 8.3 million tons of palm shells, only 1.9 tones are newly exported, the remaining much of which is not utilized, this is Indonesia's chances but is hampered by an export tax that reaches 7 US dollars plus 10 US dollars of palm levy per ton of palm shells, while Malaysia does not apply the tax, "said Chairman of APCASI Dikki Akhmar on Discussion themed" Realizing Self-Reliance Energy-Based Eco-Based Energy in Jakarta, Thursday (3/5/2018)

He explained that due to the export tax which is valid since June 2015, from 35 exporters of palm shells only five are still survive and many of its follow-up businesses are stopped like transportation, sorter workers.

"Another result is that when a lot of palm shells are piled up because they are not exported, finally the law of the market applies and the price of the palm shell drops," he said.

According to him, the reasonable export duty for palm shells ranges from US $ 3 per ton to export duty and three US dollars per ton for palm fines so that exporters still have a margin to run their business.

Currently world crude palm shell prices range from 77 to 79 dollars per ton, but businessmen are also taxed VAT for the purchase of palm shells.

He disclosed that many of the impacts of the palm shell business such as the shipping of palm shell business from factory to port reached Rp150 billion per year and the workforce involved 385 drivers, distribution personnel and loading and unloading personnel.

Even the VAT tax from the purchase of palm shells reached Rp67, 5 billion per year.

Currently Japan needs a palm shell to power two biomass power plants, while in the future it also adds seven more generators from biomass.

He also hopes that abundant palm shells that can be used by power plants in Indonesia for example using funds from the Fund Management Agency Plantation Palm.

Head of Sub-Division of Non-Food Plantation Industry Ministry of Industry Lila Harsah Bachtiar who attended the event also said that the export tax of palm shell could be revised but there is a process and hope the entrepreneur proposes for the right reasons.

He said the reason for the government to apply the export tax on the palm shell is because it is considered as a source of biomass to power the power plant so it is expected to be used domestically.

It is estimated that the waste of palm shells in Indonesia in 2020 reached 10.4 million tons with the calorie value of the palm shell reached 3,300 kcal per kilogram so that if used for power plants can generate hundreds of megawatts.