Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Indonesia yet to decide on whether to revise palm oil export levy - Officials

06/04/2021 | 02:39am EDT

JAKARTA, June 4 (Reuters) - Indonesian authorities have yet to decide on whether to cut their crude palm oil (CPO) export levy, three officials told Reuters on Friday, as the levies remained at their highest for five months in a row, hurting demand.

Indonesia, the world's top producer of the edible oil, raised CPO export levies last year to generate funds for its ambitious palm-based biodiesel programme and smallholder farmer replanting scheme, at the expense of demand.

"It is still being discussed ... the export levy needs a review," Joko Supriyono, a member of the supervisory board of BPDP, the government body in charge of subsidising palm oil programmes, told Reuters.

"(We need to) consider market dynamics but also sustainably support the biodiesel program and replanting programme," he added.

Musdhalifah Machmud, deputy minister of food and agriculture, told Reuters that authorities routinely review the levy but no decisions about cutting levies have been made yet.

Abdul Rochim, director general of the industry ministry said the issue was being debated but nothing had been decided.

The levy was raised from a flat rate of $55 per tonne to a price-dependent, progressive system of $55-$255 per tonne. For June, it was set at $255 for the fifth successive month.

Analysts, traders and trade groups have warned that higher tariffs could impact demand for the versatile oil as consumers look at cheaper alternatives, while farmers say that higher levies lower prices for their fresh fruit bunches.

But Indonesia's biodiesel policy, where it is mandatory for diesel to be blended with 30% biocontent from palm, has helped the country sop up excess supply of palm and has supported prices.

Downstream sector industry groups showed support for a higher levy for palm oil, which is widely found in consumer products, saying it guaranteed supply and higher value-added palm oil shipments.

Indonesia's CPO exports rose 18.7% in March year-on-year, the country's palm oil association (GAPKI) reported last month. GAPKI has not released data subsequent months. (Reporting by Bernadette Christina Munthe; Writing by Fathin Ungku; Editing by Martin Petty)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
CRUDE PALM OIL 1.10% 963 End-of-day quote.13.59%
LONDON BRENT OIL -0.42% 73.99 Delayed Quote.43.83%
WTI -0.86% 71.64 Delayed Quote.48.80%
Latest news "Economy & Forex"
01:14pTether executives said to face criminal probe into bank fraud - Bloomberg News
RE
01:14pLordstown Motors says hedge fund may buy up to $400 million of its stock
RE
01:12pAon, Willis scrap $30 billion merger over monopoly concerns, delay
RE
01:10pLockheed's classified development program loss will be future production program
RE
01:09pLockheed Martin's F-35A fighter jets could cost more in the future, CFO says
RE
01:07pU.S. new home sales hit 14-month low amid supply constraints
RE
01:05pOil slides as coronavirus, slower China imports weigh on demand outlook
RE
01:04pStrained G20 climate talks could yet deliver progress on coal
RE
12:59pDior, Fendi frenzy helps luxury group LVMH extend its reach
RE
12:58pKazakhstan's central bank raises policy rate to 9.25%
RE
Latest news "Economy & Forex"