Detail

Indonesia

Oilseeds, oils and meals

Palm oil

01/12/2020

Trade

Export measures (export levy)

In December, converted the levy charged on crude palm oil exports from a fixed amount to a variable rate ranging from USD 55 to USD 255 per tonne, depending on the commodity’s market price. The levy was raised gradually between December 2020 and February 2021, reflecting rising market prices.

INDONESIA – palm oil export duties: The marked rise in world palm oil prices recorded since mid-2020 has led to adjustments in Indonesia’s export tariffs. On 30 November, the tax on crude palm oil exports was raised from USD 3 per tonne to USD 33, while, on 10 December 2020, the levy charged on crude palm oil exports changed from a fixed amount of USD 55 per tonne to a variable rate ranging from USD 55 to USD 255 depending on the commodity’s price. The USD 55 rate kicks in when the benchmark price reaches USD 670, with every additional USD 25 price rise triggering a USD 15 levy increase – up to a maximum of USD 255 when the price exceeds USD 995 per tonne. The levies on refined palm oil products have also been raised progressively. For December, based on a reference price of USD 871 per tonne, the combined export tariff applied to crude palm oil cargoes amounted to USD 213 per tonne, composed of a USD 33 tax and a USD 180 levy.