Indonesia relaxes palm oil levy rules

Indonesia, the world's top exporter of palm oil, will not collect levies from palm exporters when prices are below a threshold of $570 per tonne, but will charge $10-$25 once prices are in a range of $570-$619 per tonne. The range will rise to $20-$50 when prices hit above $619 per tonne.

JAKARTA: Indonesia has relaxed rules on levies for palm oil and derivative products effective immediately following a drop in prices, according to a finance ministry regulation uploaded on a government website on Wednesday.

Indonesia, the world's top exporter of palm oil, will not collect levies from palm exporters when prices are below a threshold of $570 per tonne, but will charge $10-$25 once prices are in a range of $570-$619 per tonne. The range will rise to $20-$50 when prices hit above $619 per tonne.

The details of the new regulation were different from the previous announcement.

Under the previous rules, exporters must pay $20-$50 per tonne regardless of what palm prices are. The rules for export taxes remain the same. - Reuters