Oleochem Analytics — The Indonesian government has raised the export tax on Crude Palm Oil (CPO) in December to $33/mt from $3/mt on Nov. 30. There was no change to the levy.
The move was expected by market participants due to rising CPO prices.
The market is still awaiting news on the export levy, which is currently at $55/mt.
Many in the sector have been waiting since September for an official update or announcement regarding the levy.
Some market participants are concerned that the higher export duty and the potentially very high export levy could hurt Indonesia’s competitiveness compared with Malaysia, whose CPO exports are exempt from export duty till the end of the year.
The market has been waiting for the levy announcement every month and as a result towards the end of each month sellers rush to export before the next month to clear the stocks.