AreaIndonesia

Commodity GroupOilseeds, oils and meals

CommodityPalm oil

Date01/12/2018

Policy CategoryTrade

Policy InstrumentExport policy

DescriptionModified the price thresholds triggering the collection of levies on palm oil exports.

NotesThe Government of Indonesia modified the parameters applying to the collection of levies on palm oil exports (see also MPPU Dec.’18). When the palm oil benchmark price falls in a range of USD 570–619 per tonne, the levy will amount to USD 10–25 per tonne, whereas USD 20–50 will be collected when the reference price exceeds USD 619. Previously, exporters paid USD 20-50 per tonne regardless of price levels. Since last November, when palm oil prices dropped below the USD 570 threshold, no export levies have been charged in a bid to maintain the competitiveness of the country’s palm oil exports. The trade ministry’s reference price for December stood at USD 549 per tonne. (NB: When the palm oil reference price exceeds USD 750, Indonesia also charges a tax on crude palm oil exports; the rules governing that tax have remained unchanged).