Indonesia has removed its export levy for all palm oil products until August 31, as the country looks to boost exports and ease the high inventories, finance ministry officials said the move would not disrupt government revenues.
Reuters reports the latest move by the world’s largest palm oil producer could further depress prices which have already fallen by about 50% since late April to their lowest. The decision was made after Indonesian producers struggled with higher stockpiles after the Government imposed a three-week export ban to reduce the domestic price increases of cooking oil.
The levy removal is intended to support exports, however, Finance Minister Sri Mulyani Indrawati said a progressive palm oil export levy would be applied starting September 1 with the rate set between $55 and $240 per tonne for crude palm depending on prices.
