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Indonesia delays start date for palm export levy to July 1: minister

Monday, June 15, 2015 - 16:02
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Indonesia has delayed the implementation date for its planned levy on crude palm oil exports to July 1 from June 15 due to administrative issues, Coordinating Minister of Economic Affairs Sofyan Djalil told reporters on Monday.

[JAKARTA] Indonesia has delayed the implementation date for its planned levy on crude palm oil exports to July 1 from June 15 due to administrative issues, Coordinating Minister of Economic Affairs Sofyan Djalil told reporters on Monday.

"We planned to implement it on June 15 but there is a technical administration problem," said Mr Djalil. The export levy, part of new biodiesel regulations, was announced in late March and signed by President Joko Widodo last month.

The new regulations will require exporters to pay a levy of US$50 per tonne of crude palm oil and US$30 for processed palm oil products shipped at a zero export tax rate.

When average prices drop below US$750 a tonne, the world's top producer of the edible oil cuts the monthly tax on exports to zero.

REUTERS