JAKARTA—Indonesia will slash its combined maximum crude palm oil export and levy rate to $488 per metric ton from $575 to encourage shipments, Trade Minister Muhammad Lutfi said on June 7.
Indonesia, the world’s biggest palm oil producer, has allowed palm oil exports to resume after a three-week ban, although progress has been slow due to red tape, keeping palm mills’ storage tanks full.
Farmers have complained that prices of palm fruits remain low because mills are still limiting their purchases.
The government would raise the maximum tax to $288 per tonne, but lower the maximum levy to $200, Lutfi said. Indonesia currently charges a maximum of $200 per tonne for export tax and a maximum of $375 for the levy….