Home Berita Finance CPO Flush Out Policy Ends, Farmers Expect FFB Prices to Increase

CPO Flush Out Policy Ends, Farmers Expect FFB Prices to Increase

sugan 3 tahun lalu
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Kebijakan%20Flush%20Out%20CPO%20Berakhir,%20Petani%20Berharap%20Harga%20TBS%20Naik
Kebijakan Flush Out CPO Berakhir, Petani Berharap Harga TBS Naik

The policy to accelerate the release of crude palm oil (CPO) from tanks through the flush out (FO) scheme officially ends today, August 1, 2022.

The Indonesian Palm Oil Farmers Association (Apkasindo) hopes that the end of the flush out will boost the price of fresh fruit bunches (FFB) for palm oil in the near future.

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The policy to accelerate the release of crude palm oil (CPO) from tanks through the flush out (FO) scheme officially ends today, August 1, 2022, in accordance with Minister of Finance Regulation (PMK) No. 101/2022 concerning Stipulation of Exported Goods Subject to Export Duties and Export Duty Tariffs in the Framework of the Program to Accelerate Distribution of CPO, Refined, Bleached And Deodorized Palm Oil (RBD Palm Oil), Refined, Bleached And Deodorized Palm Olein (RBD Palm Olein), and Used Cooking Oil (UCO) Through Export.

"I hope that by not taking the FO from today, August 1, it will significantly increase the price of FFB," said Apkasindo DPP chairman Gulat Manurung, Monday (1/8/2022). 

According to his calculations, starting today, with the FO (US$200/ton CPO) no longer valid, the domestic CPO price will increase by Rp3,000/kg. If it is transmitted to the FFB price, it will increase by Rp. 1,000 per kilogram.

"So there will be a double strike , namely Rp. 1000/kg of FFB due to the zeroing of PE, and Rp. 1,000/kg of FFB due to the invalidity of PO," he continued.

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This means that with the FO not being enforced, entrepreneurs have become lighter in exporting CPO, especially with the Rp0 policy for CPO export levies.

The price of FFB for farmers from 22 provinces based on Apkasindo data until July 30, 2022, the price of FFB for independent smallholders is only at Rp. 1,448 and farmers in partnership are Rp. 1,775/kg.

Based on Apkasindo data, all FFB prices are currently 5-21 percent below the Disbun recommended price.

"The price of FFB should have reached Rp2,100-Rp2,250, as a result, PE will no longer be charged. This is inseparable from the slow movement of CPO prices resulting from the KPBN tender," he said. 

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