Indonesia to impose palm export levy to fund subsidies, R&D

Jakarta

INDONESIA, the world's biggest palm oil producer, will impose export levies to fund biodiesel subsidies as well as replanting, research and development.

Shippers will pay a levy of US$50 a tonne for palm oil and US$30 for processed products starting this month, Sofyan Djalil, coordinating minister for economic affairs, said in Jakarta on Saturday. The government will keep the threshold for application of a separate export tax at US$750 a tonne, Mr Djalil said.