TEMPO Interactive, Jakarta: The government is aiming to reduce crude palm oil export down to 30 persen of total domestic production by 2020 and targeting to increase production by almost 100 percent.
In a press conference on achievements in the first 100 day of President Susilo Bambang yudhoyono's final term, the Industry Department said on Monday export limitations in the next ten years is a measure to facilitate growth of domestic palm oil industry.
Trade Minister MS Hidayat said production boost and export deterrence will be provided by incentives or disincentives for example “If an upstream industry supports a downstream one, it will receive incentives in form of tax reduction.”
Director General of Agriculture and Chemical Industries Benny Wahydi said currently there were only 15 – 17 types of downstream palm oil industries and the department is targeting to improve the number to 30.
Data from the Indonesian Crude Palm Oil Business showed current production capacity at 21.5 million tonnes. About 72 percent or 15.5 million tonnes was exported. The government said production is to be improved to 40 million tonnes by 2020.
