Indonesia extends palm oil export tax exemption until end of October

Indonesia has extended its zero-levy policy for palm oil exports until October 31, the Coordinating Ministry for Economic Affairs announced on August 29.

The extension of the zero export tariff will maintain the current momentum where the prices of crude palm oil and domestic cooking oil have stabilised, and the price of fresh fruit bunches has increased so that farmers could enjoy the benefits, Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto said.

Indonesian palm oil producers have struggled with high stockpiles after the country imposed a three-week export ban from April 28 to May 23 to reduce domestic cooking oil prices.

Since lifting the ban, Indonesia has implemented rules on mandatory local sales - known as the domestic market obligation (DMO) - to maintain domestic cooking oil production.

The temporary policy of cutting the palm oil export levy to zero from around 200 USD per tonne was introduced by the world's largest palm oil producer in July, to boost exports and reduce oversupply in the domestic market./.

VNA