Indonesia’s 10% levy could cause CPO exports to plummet

“Increasing the export levy will make Indonesian palm oil (exports) less competitive compared to neighbouring countries,” Gapki chairman Eddy Martono said. — The Jakarta Post

JAKARTA: The Indonesian Palm Oil Association (Gapki) has warned that a plan to increase the levy on crude palm oil (CPO) exports to 10% next year could render local producers less competitive in the international market.

The government currently imposes a 7.5% levy on CPO exports, while a lower rate of between 3 and 6% of the reference price applies to refined palm oil products.