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Lower palm oil tariffs come into effect
“This lower rate will hopefully increase the competitiveness of [Indonesian] palm oil products on the international market,” said Oil Palm Plantation Fund Management Agency (BPDPKS) president director Eddy Abdurrachman.
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Environmental matters: An aerial photo shows an oil palm plantation in Bulutumbang, Belitung. (JP/Donny Fernando)
I
ndonesia, the world’s top palm oil producing country, has lowered tariffs on exported Crude Palm Oil (CPO) and on derivative products to boost the sales of such goods abroad.
The country charges palm oil export tariffs in proportion to international CPO prices, both of which are expressed in US dollars per ton.
Finance Ministry Regulation No. 76/2021 raises the international price threshold for the lowest tariff rate – US$55 per ton – from $670 per ton to $750 per ton starting July 2. The regulation was issued on June 25.
The regulation also lowers the highest tariff rate from $255 per ton to $175 per ton.
“This lower rate will hopefully increase the competitiveness of [Indonesian] palm oil products on the international market,” said Oil Palm Plantation Fund Management Agency (BPDPKS) president director Eddy Abdurrachman in a statement on Tuesday.
Read also: Indonesia imposes higher export levies amid year-end rally in global CPO prices
The statement added that the new regulation lowered the maximum export tariff from 36.4 to 30 percent of international CPO prices.
