Indonesia halts export levy on crude palm oil amid global price drops

The government of Indonesia has halted export tax imposed on crude palm oil and its derivative products until next year to ease the financial burdens of palm oil producers amid a drop in prices on the world market.

The export tax was suspended until January next year as the government officiallybegins the implementation of its mandatory B-30 biodiesel programme, said EconomicCoordinating Minister Darmin Nasution on September 24.

The suspension had been approved by President Joko Widodo, Darmin said,adding that he hopes the implementation of the B-30 biodiesel policy, which wassupposed to significantly raise the demand for palm oil, would be able to boost palm oil prices in the domestic market.

Based on the latest Indonesian FinanceMinistry regulation, the country wouldhave collected an export tax of up to 25 USD per tonne ifprices hovered between 570 USD and 619 USD per tonne and upto 50 USD if theprices go beyond 619 USD per tonne.

As of September 20, the crude palm oil price was at 574.9 USD per tonne and it is expected to slightly fall to 570 USD per tonne untilthe end of this year.

In 2018, a similar slumpin crude palm oil prices also prompted the government to suspend the exportlevy./.VNA

Leave your comment on an article