Indonesia extends palm oil export levy waiver up to ref price of $800/T
Indonesia said on Monday it has extended until the end of this year its policy of waiving a palm oil export levy, unless the palm oil reference price breaks $800 per tonnes, the economic ministry said.
The world’s top palm oil producer has waived the levy since mid July to encourage exports following a three-week palm oil export ban aimed at controlling domestic cooking oil prices. That ban led to a problematic inventory glut.
The waiver was initially due to expire at the end of October.
“Once the price reach $800 per tonne, the zero levy will no longer be in effect,” Coordinating Minister for Economic Affairs Airlangga Hartarto said in a statement.
Indonesia set its Nov 1-15 CPO reference price at $770.88 per tonne, a regulation document showed on Monday.
The reference price, set every two weeks, has stayed below $800 per tonne since early October.
Source: Reuters (Reporting by Bernadette Christina Munthe Writing by Fransiska Nangoy; Editing by Martin Petty)