The export levies were set based on the reference price of CPOJakarta (ANTARA) - The government has imposed progressive export levies on palm oil products, including crude palm oil (CPO) and its derivatives, according to the Finance Minister’s Regulation (no. 191/PKM.05/2020) issued on December 3, 2020.
"The export levies were set based on the reference price of CPO," the document obtained here on Friday stated.
The regulation is based on the decision on export levies taken by the Indonesian Palm Oil Fund Management Agency (BPDPKS) steering committee, led by the Coordinating Minister for Economic Affairs, Airlangga Hartarto.
In a statement, the agency's division for fund collection and derivative products fees explained the decision to adjust the export levies is based on the positive trend in CPO prices.
It is also aimed at supporting the development of the national palm oil industry, including the improvement of productivity in upstream industry through the replanting program and support to the mandatory biodiesel program to boost domestic demand, it said.
Under the ministerial regulation, export levies would be implemented progressively, with an increase from US$5 to US$15 for each increase in the price of palm oil of US$25 per metric ton (MT).
The export levy has been fixed at $55 per mt for CPO price of $670 per mt or less; $60/mt for CPO price of $670 - $695/mt; and, $75/mt for CPO price of $695 - $720/mt.
The highest levy has been set at $255 per metric ton for CPO price above $995/mt.
In total, there are 24 types of services for palm oil and its derivatives export levies.
"The ministerial regulation will take effect seven days after its issuance," the agency said. (INE)
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EDITED BY INE
Translator: Sri Haryati
Editor: Fardah Assegaf
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