The Palm Scribe

RI palm oil levy to kick in at $570

The Jakarta Post, 6 December 2018

Indonesia has eased rules on palm oil levies and derivative products following a drop in prices. The world’s top exporter of palm oil will not collect levies from palm exporters when prices are below a threshold of $570 per metric ton, but will charge $10 to $25 per metric ton once prices are in a range of $570 to $619 per metric ton. The levy will rise to $20 to $50 when prices hit above $619 per metric ton. Indonesia also imposes export taxes on crude palm oil when the reference price is above $750 per metric ton. The details of the new regulation were different from those announced last week.

Economic Affairs Coordinating Minister Darmin Nasution said higher crude palm oil prices in Rotterdam means the government has to increase the floor price for exports to be imposed with levies.

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