Area
Indonesia
Commodity Group
Oilseeds, oils and meals
Commodity
Palm oil
Date
01/07/2020
Policy Category
Trade
Policy Instrument
Export policy
Description
Kept the variable export tax for palm oil suspended until September 2020, in line with the commoditys persistently low market price. In October, triggered by a rebound in prices, export taxation was reintroduced at a rate of USD 3 per tonne. Conversely, the palm oil export levy continued to be collected throughout the period, including an increase in the rate from USD 50 per tonne to USD 55 in June 2020 to raise additional funds for the support of domestic biodiesel production. Reportedly, in October, the Government considered turning the fixed levy into a variable one linked to prices, with every USD 25 rise in the price of palm oil triggering a USD 5 increase in the rate.
Notes
INDONESIA sliding export tax (palm oil): For August and September, Indonesias progressive export tax for palm oil will stay at zero, as the respective reference price remained below the USD 750 per tonne threshold that triggers taxation. September marks the sixth consecutive month of tax suspension. Meanwhile, the USD 55 per tonne palm oil export levy remains in place.
