Indonesia issues new levy rules on palm oil

19-Sep-2024 08:47 PM

Jakarta. The government of Indonesia, the world's largest producer and exporter of palm oil, will introduce a new set of monthly levies on palm oil with the aim of increasing its competitiveness in the global market against other rival edible oils.

A regulation to this effect has been published by the Ministry of Finance. Under the new rules, the levy will be determined for crude palm oil (CPO) at the rate of 7.5 percent of the reference price.

This reference price is determined by the federal government at regular intervals. A lower level levy will be imposed on some other products of refined palm oil to encourage its export.

A rule has been made to impose a levy of between 3 to 6 percent of the reference price on refined palm oil products, which is much lower than CPO.

Currently, a levy of $ 55 to $ 240 per tonne is imposed on the export of crude palm oil in Indonesia,

depending on its reference price. According to trade analysts, the implementation of the new rule will definitely improve the competitiveness of exports of Indonesian origin palm oil products and this process can start from October.

For October 2024, levies have been imposed in Indonesia at the rate of $ 62.96 per tonne (7.5 percent of the reference price) on crude palm oil, $ 37.78 (4.5 percent) on RBD palm oil, $ 37.78 (4.5 percent) on RBD palmolein, $ 50.37 (6 percent) on palm fatty acid distillate and $ 3778 per tonne (4.5 percent) on RBD palm styrene.