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Govt extends CPO export levy waiver to secure market share amid price slump
The government will continue to waive export levies on palm oil products, allowing the world’s largest supplier to keep boosting shipments abroad for the rest of this year.
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A worker loads fresh oil palm fruit bunches to be transported from the collection site to processing centers in Pekanbaru, Riau, on April 27, 2022. (Reuters/Willy Kurniawan)
T
he government will continue to waive export levies on palm oil products, allowing the world’s largest supplier to keep boosting shipments abroad for the rest of this year amid a drop in global prices.
Coordinating Economic Minister Airlangga Hartarto said the government planned to extend the exemption until the end of the year, giving exporters an additional two months to avoid fees for selling their goods abroad.
“The plan is for an extension […] to the end of this year,” Airlangga told reporters on Tuesday.
Introduced on July 15, the waiver was initially to remain in effect until the end of August but has since been extended to the end of October.
The policy was one of many government measures to reduce CPO stocks in the country that had piled up during a weeks-long export ban imposed earlier to bring down domestic cooking oil prices. Other measures included granting firms increased CPO export quotas in exchange for them selling the commodity below market price to domestic industries.
Read also: Indonesia removes palm oil export levy until Aug. 31
CPO stocks in Indonesia had reached 7.2 million tonnes in May, immediately following the ban. Two months after the government had removed it, stocks totaled some 5.9 million tonnes, still higher than the country’s previous average at 3.7 million tonnes.
