Indonesia relaxes palm oil levy rules

Indonesia has relaxed rules on levies for palm oil and derivative products effective immediately following a drop in prices. (AFP pic)

JAKARTA: Indonesia has relaxed rules on levies for palm oil and derivative products effective immediately following a drop in prices, according to a finance ministry regulation uploaded on a government website on Wednesday.

Indonesia, the world’s top exporter of palm oil, will not collect levies from palm exporters when prices are below a threshold of US$570 (RM2,370) per tonne, but will charge US$10-$25 once prices are in a range of US$570-$619 per tonne. The range will rise to US$20-$50 when prices hit above US$619 per tonne.

The details of the new regulation were different from the previous announcement.

Under the previous rules, exporters must pay US$20-$50 per tonne regardless of what palm prices are. The rules for export taxes remain the same.