REPUBLIKA.CO.ID, JAKARTA - The Minister of Industry, M.S. Hidayat stated that the US government had concluded that palm oil and crude palm oil (CPO) products from Indonesia were eco-friendly. Yet, some tests by Environmental Protection Agency (EPA) are still needed.

"The US government has approved Indonesian CPO to be included in the category of eco-friendly commodities. However, there will be an examination conducted by the US Environmental Protection Agency (EPA)," Hidayat said on weekend.

Meanwhile, Executive Director of Indonesian Palm Oil Producers Association (Gapki), Fadhil Hasan said that the export duties of CPO would be cut by five percent if Indonesian CPO was included in the category of eco-friendly commodities. "Besides, as an eco-friendly product, Indonesian CPO will have great potential to expand into the export market," Hasan said.

"By the end of this year, CPO exports are estimated to reach 17.5 million tons, which is lower than the early target of 18 million tons," he added. 

The Indonesian Palm Oil Producers Association noted that Indonesian CPO products were charged for export fees in several countries such as China, India and Pakistan. However, in American and Australian markets, Indonesian CPO products are subject to non-tariff barriers for being rated as unhealthy and not eco-friendly.

"In Indonesia, the producers of palm oil still have to pay duties that range from 7.5 percent to 22.5 percent, for all kinds of palm oil products," Hasan explained.

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