Indonesia to review palm oil export levies, policy may not change and maintain competitiveness against rival
18/11/2024 (Reuters), Jakarta - Indonesia is looking to review the way it sets palm oil export levies to maintain competitiveness against rival edible oils, an official said on Monday, describing it as a regular move to evaluate its trade policy.
Malaysian palm oil futures last week rose as traders anticipated a possible change in Indonesia's export levy or tax structure, though prices fell in early trade Monday, tracking weakness in rival Dalian oils and pressured by a strong ringgit.
Indonesia, the world's biggest palm oil exporter, last revised its levies in September this year.
"We should evaluate export levies regularly to increase the welfare of farmers and maintain its competitiveness at the global level," said Dida Gardera, who handles food and agribusiness at the coordinating ministry of economic affairs.
Dida was responding to a question from reporters about a possible policy review during a palm oil conference.
Dida said authorities will evaluate policy every three-to-six months, stressing they may opt to keep policy unchanged.
Indonesia sets palm oil export tax and levy rates monthly based on a government-determined benchmark price for the edible oil.