March 21, 2015
Indonesia will impose a levy of $50 a tonne on exports of crude palm oil when prices fall below a threshold triggering a monthly tax on shipments overseas, the chief economics minister said.
When prices of crude palm oil fall below the threshold of $750 a tonne on average, the world's top producer of the tropical oil cuts the monthly tax on its CPO exports to zero.
Benchmark Malaysian palm oil futures have fallen more than a fifth over the last year, and ended on Friday at 2,160 ringgit ($579) per tonne.
Indonesian officials are preparing new rules for a charge of $50 on every tonne of CPO shipped at the zero export tax rate, Sofyan Djalil told reporters, with the funds going to help pay for biodiesel subsidies announced in recent weeks.
The measure will go to Indonesian President Joko Widodo for approval on his March 30 return from overseas trips.
Indonesia ramped up biodiesel subsidies last month, in a bid to protect its biofuels industry against lower prices of crude and cut costly imports of diesel.
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