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.