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Indonesia is reducing export duties on palm oil to increase global shipments.
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Indonesia is reducing export duties on palm oil to increase global shipments.

Indonesia will reduce export duties on palm oil to $63 per ton, making them more competitive on the market compared to Malaysia. The new rule on duty reduction will come into effect on September 21.

22 September 2024 22 September 2024

According to information from OleoScope, Indonesia has decided to reduce export duties on palm oil in hopes of increasing its shipments on the global market.

According to a decree published on the Indonesian Ministry of Finance website, the world's largest palm oil producer has set a levy at 7.5% of the base price for crude oil. This new rule will take effect on September 21 and will lower the export duty to $63 per ton, compared to $90 in September. The levy on processed palm products will range from 3% to 6%.

Analysts believe that these changes will help Indonesia become more competitive compared to Malaysia, the world's second-largest palm oil producer. Furthermore, this may put pressure on palm oil futures, which have declined by more than 10% on the Kuala Lumpur exchange since the April peak.

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