Indonesian government to implement zero export levy for palm oil products, if the prices below US$570 a ton, said Ministry of Finance (MoF) on Tuesday (Dec 4). The higher levy set at US$50 a ton if the price above US$690 per ton. The policy has been taken to protect the domestic palm oil industry from falling prices due to flagging exports and oversupply.
Under the MoF Regulation Number 152/PMK.05/2018, one of the largest palm oil producer not collect the levies if the CPO price below the threshold US$570 per ton. During past week, the CPO price has been dwindled to around US$410 per ton.
Then, if the price is in the range of US$570 to US$619 per ton, the export levy becomes US$10 to US$25 a ton. And, if the international price has returned to normal above US$619, the export levies will again be set at US$50 per ton.
