Indonesia plans to cut export levy on palm oil

09-Sep-2024 07:45 PM

Jakarta. In order to maintain its competitiveness in the international market, Indonesia is planning to cut export levy on palm oil. It is known that Indonesia is the world's largest producer and exporter of palm oil.

It is feeling the need to increase the competitiveness of its palm oil in comparison to rival edible oils like soybean oil, sunflower oil and rapeseed-canola oil.

With the increase in palm oil exports, the income of oil palm producers will increase and the economic condition of the crushing processing industry will also improve.

According to industry analysts, although traditionally the price of palm oil remains below that of soft oils, but in recent months, the price difference has reduced considerably due to the fall in the price of soybean oil and sunflower oil.

Countries like India and China are now paying special attention to the import of soybean oil and sunflower oil instead of palm oil.

A senior official of the Ministry of Coordination of Economic Affairs says that palm oil is generally considered the cheapest edible oil, but now its competitiveness has decreased in comparison to soybean oil and sunflower oil.

If a decision is taken to reduce the export levy, it can be a great help in increasing the export of palm oil. Oil palm companies try to offer a lower price as the export tax is very high and they will be able to offset it only if they buy palm at a lower price.

Under the current rules, a levy of between $55 and $240 per tonne is imposed on the export of crude palm oil (CPO) in Indonesia, which is separate from the export duty.