Oleochem Analytics – Indonesia maintained the crude palm oil (CPO) export tax and levy at the top rate $375/t for December, an official document on the trade ministry website showed 29 November.
The CPO reference price used to calculate the tax rate was higher at $1,365.99/t for December, up from $1,283.38/t a month earlier.
The increase in the CPO reference price, which was in line with market expectations, was because of high demand and increasing consumption in China, a decline in production as a result of a continuing lack of workforce in mills and plantations, and rainy weather conditions during peak season.
The elevated tax and levy in Indonesia has made Malaysian palm oil more competitive in major consumption markets like China and India.
The reference price is issued monthly by the government through the trade ministry and is based on a weighted average of Bursa Malaysia CPO close, Indonesia’s ICDX settlement and Rotterdam cash export prices from 21st to 20th of every month.