A number of farmers groupings have sent a letter to related economic ministers and the president’s advisory unit, urging the government to drop the export tax policy on CPO and cocoa beans.
In the letter, sent on January 16, the groups also asked the government not to continue with plans to impose export tax on other plantation commodities such as coconut, coffee, and cashew.
The letter was signed by the Indonesian Oil Palm Farmers Association (Apkasindo), the Indonesian Coconut Council (Dekindo), the Association of Oil Palm Plasma Farmers (Askepir), the Indonesian Cocoa Association (Askindo), the Indonesian Coconut Farmers Association (Apki), and the Indonesian Coffee Exporters Association (Aeki).
Apkasindo Secretary General Asmar Arsjad said on Thursday during a seminar that the government has yet to respond to the letter. He said that if the government insists on maintaining the export tax policy, Apkasindo suggests the tax to be a flat rate tax instead of the current progressive tax.
He said that the export tax on CPO has created heavy financial burden for oil palm farmers as they could not fully benefit from the strong price of the commodity in the international market.
He added that the use of the tax revenue from palm oil has not been transparent, demanding that part of the proceeds should be returned to the farmers such as in the form building badly needed infrastructure facilities in the remote regions.
Askindo Executive Secretary Firman Bakri said that cocoa farmers have to shoulder the burden of the export tax on cocoa as traders and foreign buyers shift the extra cost to them. (rei)
