Indonesia's palm levy still under discussion, government says

[JAKARTA] Indonesia's plans to introduce levies on crude palm oil and processed products are still being discussed by the country's chief economics ministry, a government official said on Tuesday.

A plan by the world's top grower of the tropical oil to levy US$50 on every tonne of CPO shipped at a zero export tax rate, was expected to be approved last week.

A US$30 levy was also due to be added to processed palm oil product exports, according to local media reports. "It's not signed yet," Dadan Kusdiana, bio-energy and renewable energy director at the energy and mineral resources ministry told Reuters on Tuesday. "It's still being finalised by the chief of the economics ministry. For two days in a row, we have had meetings to finalise it."

In addition to funding Indonesia's recently announced biodiesel subsidies, the levies may help boost palm oil prices which fell nearly 15 per cent last year.

REUTERS