Indonesia issues new palm oil levies rule effective this weekend

INDONESIA will require monthly levies for export of crude palm oil to be set at a 7.5 per cent rate of the reference price set periodically by the government, a regulation document published on Thursday (Sep 19) by the finance ministry showed.

The new rules will take effect on Sep 21.

The more refined palm oil products will be charged lower levy rates, the document showed.

Indonesia currently imposes a levy of between US$55 to US$240 per metric tonne for crude palm oil exports, depending on a set of price brackets for the monthly reference price.

The levies are collected to help finance palm oil programmes such as a replanting subsidy for smallholders and for the country’s biodiesel programme. REUTERS