CPO Export Levies Postponed to 2020 Following Volatile Prices

By Editorial Team 25/09/2019
Summary

The government plans to impose export levies on crude palm oil (CPO) and its derivative products starting January 1, 2020. The amount depends on the price of the commodity on the global market. The export levy is applied simultaneously with the mandatory 30 percent blended biodiesel (B30) policy. The government should have implemented a CPO export levy on October 1, 2019, because the CPO price had reached US$ 574.9 per ton as of September 20.

Referring to the Minister of Finance Regulation (PMK) No. 23/2019, if the CPO price is above US$ 570 per ton, then the export levy will be set at US$ 25 per ton. For CPO prices above US$ 619 per ton, the export levies rise to US$ 50 per ton. However, the government delayed its implementation due to volatile global CPO prices. For next year, it estimates that the prices of these commodities will improve next year and in an upward trend.

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