JAKARTA (ANTARA) – President Joko Widodo (Jokowi) has instructed the Palm Oil Plantation Fund Management Agency (BPDPKS) to implement a replanting plan to double cocoa and palm oil production.
This was conveyed by Coordinating Minister for Economic Affairs Airlangga Hartarto after a limited-term cabinet meeting on coconut and cocoa held at the Presidential Palace in Jakarta on Wednesday.
“From an industry point of view, the number of cocoa plantations is decreasing. The need for industrial development has almost doubled,” he said.
He noted that Indonesia’s cocoa production reaches about 180,000 tonnes and oil palm production reaches about 2.8 million tonnes, with annual cocoa exports reaching $1.3 billion and oil palm exports reaching $1.2 billion.
According to Hartarto, Indonesia’s cocoa cultivation area currently reaches 1.3 million hectares, while oil palm cultivation area reaches 3.3 million hectares.
Meanwhile, state revenue from export taxes and customs duties on cocoa exports is estimated at approximately 46.9 million rupiah (US$2,891) per year.
“It is well known that in the past, cocoa has been subject to export taxes, which were primarily aimed at meeting domestic demand and as a result export taxes have ranged from 0 to 15 percent depending on the price,” the minister said.
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According to Hartarto, several countries, including Côte d’Ivoire and Ghana, impose export taxes on cocoa of about $500 per tonne.
He added that there are currently 31 companies operating in the cocoa and chocolate industry in Indonesia, with a production capacity of 1,240 tonnes.
He noted that the President had called for doubling the country’s cocoa production to 400,000 tonnes with the help of replanting.
He said the BPDPKS is the organisation responsible for replanting cocoa and coconut trees through the provision of seedlings from universities and research centres.
“To this end, the President has directed that additional mandates should be given to agencies responsible for reforestation and development of cocoa and oil palm based industries,” he added.
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