<article>The Indonesian government has launched the Plantation Fund Management Agency, which collect the tax and manage the crude palm oil fund.</article>

The Indonesian government has launched the Plantation Fund Management Agency, which collect the tax and manage the crude palm oil fund.
The fund that will be collected from palm oil companies, will be used to support the palm oil sustainability development program, including boosting of the bio diesel production in the country.
The new body, also known as the CPO Fund Agency, will collect CPO export levy starting from July 16 and can potentially generate around Rp10 trillion ($751.88 million) per year.
Chief executive CPO Fund Bayu Khrisnamurti said that this year the agency expects to collect CPO export levy of around Rp4.5 trillion from local producers and will use it to replant 2,000 hectares of palm oil plantation estate.
Khrisnamurti, who is also the former Deputy Minister of Trade added that the replanting programs could help increase the bio diesel production by up to 5.2 million kiloliters per year. This year, the agency expects to supply 2 million kiloliters in the market through state-run energy company <a style="color: #000080;" href="http://www.pertamina.com/en/" target="_blank">PT Pertamina</a>.
“We will start to collect the levy from local producers starting July 16. To support our program, the government plan to release three new ministerial decrees on the levy procedure, verification scheme and surveyor,” he said.
Previously, Coordinating Minister for Economic Affairs Sofjan Djalil had said that the government plans to impose levy of $50 per metric ton on palm oil exports and around $10 &#8211; $40 per metric ton for palm oil derivative products. 
According to the government data, there are around 4 million hectares traditional palm oil farms. However, they only produce an average of 2.5 tons per hectare, compared to 5 ton per hectare of plantations managed by large corporations.
Meanwhile, biodiesel consumption for this year is expected to reach 3.5 million kiloliters, lower than initial target of 5.3 million kiloliters.
In May this year, President Joko Widodo has signed a presidential decree on the creation of the new body, including the regulation on the levy, tax incentives and other supporting rules to implement the law. Under the previous rule, there was no tax levied on CPO exports if the price fell below $750 per metric ton.
However, under the new law, the government will impose levy on all CPO exporters even when the CPO price is below $750 per metric ton.
Indonesia has set the CPO export tax at zero since October 2014. The tax can rise to a maximum of 22.5 per cent.

The Indonesian government starts operating the Plantation Fund Management Agency which has main task to collect and manage crude palm oil fund. The funds to be collected from palm oil companies, will be used to support the development of palm oil sustainability developing program, including boosting bio diesel production in the country.

Indonesia CPO Fund agency starts operations, to help increase bio diesel production

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Indonesia CPO Fund agency starts operations, to help increase bio diesel production

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