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Jakarta Post

Indonesia imposes higher export levies amid year-end rally in global CPO prices

  • Adrian Wail Akhlas

    The Jakarta Post

Jakarta   /   Fri, December 11, 2020   /  07:46 am
The Jakarta Post Image
Bunches of harvested palm fruit lie in the shade beneath oil palms at an unidentified plantation in this undated stock photograph.(Shutterstock/mrfiza)

Indonesia, the world’s top palm oil producer, is to impose higher export levies on crude palm oil (CPO) starting Thursday as the price of the commodity rallies ahead of the year-end. The policy also aims to support the government’s mandatory biodiesel program. The recently issued Finance Ministerial Regulation No. 191/2020 imposes progressive export levies ranging from US$55 to $255 per metric ton of CPO depending on the reference price. In comparison, the previous regulation imposed a flat CPO levy of $55 per metric ton, regardless of price. So under the new regulation, a $55 per metric ton will be imposed if the CPO reference price is $670 per metric ton or below, with the levy increasing between $5 and $15 for every $25 hike per metric ton of CPO. Food and agribusiness coordination deputy Musdhalifah Machmud at the Office of the Coord...