HANOI – Indonesia, the world’s largest palm oil producer, will begin raising export tariffs on crude palm oil (CPO) to support its government’s compulsory bio-fuel programme.
Accordingly, the country applies progressive export levies of US$55 (RM222) to US$255 for each CPO tonne depending on reference prices, reported Vietnam News Agency.
Indonesian Deputy Food and Agriculture Minister at the Coordinating Ministry for Economic Affairs Musdhalifah Machmud said the policy will be revised monthly to suit economic conditions.
The credit rating agency Fitch Ratings said on Monday that the export levy increase will raise biodiesel consumption next year to offset subsidy burden.
According to the Indonesian Palm Oil Association, CPO export will decline by 18% this year to 24.92 million tonnes, mostly due to falling demand from the European Union, China and India. – Bernama, December 17, 2020
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