PALMOILMAGAZINE, JAKARTA – Commission VII member of the Indonesian legislature, Bambang Patijaya, expressed concern over the high taxes on palm oil plantation derivative products, which can range from 9% to 12%. He warned that these taxes could burden the palm oil industry.
While some companies in certain regions receive incentives, he believes the government should increase these incentives to foster innovation in downstream sectors.
Patijaya emphasized that additional government support would not only help alleviate the heavy tax burden but also encourage companies to innovate and expand their investments in palm oil production and processing.
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“If the companies that made innovations got particular incentive from the government, this would be something interesting to develop palm oil downstream products to be more qualified and competitive,” he said, as Palmoilmagazine.com quoted from TVR Parlemen, Wednesday (14/8/2024).
He continued it would be very significant for palm oil industries to get innovation to confirm sustainability and competitiveness in the globe. By delivering the right incentive, he hoped the companies in Indonesia would keep innovating and developing more additional palm oil downstream products.
He also suggested the government to listen to every input from the business sectors, namely about providing incentives because the synergy between the government and private sectors would be the key to face every available challenge and get the chance in palm oil industries.
As one mainstay commodity in Indonesia, palm oil would massively have the big potential to be developed by having innovations that would be supported by pro – investment policy and the right incentives from the government. Bambang hoped this would reinforce Indonesia as the main palm oil producer in the world and encourage more sustainable and inclusive economic progress. (P2)
