INFO SAWIT - Indonesia has imposed new palm oil export levies since July 2, slashing the ceiling rate for crude palm oil levies (CPO) from $255 to $175per tonne after criticism from stakeholders.

The new palm oil export levies has been effective with the inssuance of a new Minister of Finance Regulation (PMK).

The Deputy for Food and Agribusiness Coordination at the Coordinating Ministry for the Economy, Musdhalifah Machmud, said that the export levy tariff adjustment was a follow-up to the decision of the Steering Committee of the Palm Oil Plantation Fund Management Agency (BPDPKS).

The tariff for export levies on palm oil products, including CPO and its derivative products, is determined based on the reference price of the Ministry of Trade with the cut off calculation of the tariff levy being the issuance date of the Notification of Export of Goods (PEB).

"The implementation of the new tariff will take effect seven days after being signed into law on June 25, 2021, and will take effect July 2, 2021," said Musdhalifah at the PMK socialization virtual event on Thursday, July 1.

In addition, the continuation of the development of these services includes improving productivity in the upstream sector through rejuvenation of oil palm plantations, as well as the creation of a domestic market through mandatory biodiesel support.

"With the implementation of this export levy adjustment, all parties are expected to continue to support the Government's policies, because we realize that all policies related to palm oil have the ultimate goal of sustaining palm oil itself, considering its very important role in the national economy," said Musdhalifah, in a written statement received by InfoSAWIT. (T2)