JAKARTA— Indonesia Trade Minister Muhammad Lutfi said on Tuesday the government would bring down its combined maximum crude palm oil export and levy rate to $488 per tonne from $575 per tonne to encourage shipments.
Indonesia, the world’s biggest palm oil producer, has allowed palm oil exports to resume after a three-week ban, but 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 maximum levy to $200 per tonne, Lutfi said. Indonesia currently charges a maximum $200 per tonne for export tax and a maximum $375 per tonne for levy….