High export taxes on CPO ineffective: economic observer

"Export taxes on CPO have been increased but CPO exports remain high. This happened because the high dollar exchange rate also had an effect on CPO prices," he added.

Sugianto said that although the export taxes were set at a higher level, exporters continued to gain profit in the world market because of the high exchange rate of the US dollar.

The government last week imposed a progressive tax in the range of 0-10 percent on CPO exports effective September 1.