Indonesia raises base export price for palm oil in June

According to a decree by the Indonesian Ministry of Trade, the reference price for crude palm oil has been set at $1,029.50 per tonne for June, down from $1,049.58 per tonne in May, Reuters reports.

“The reduction in the reference price was due to reduced demand from key importing countries, such as India,” the ministry explained.

Therefore, the export tax on crude palm oil has been reduced to $148 per tonne this month.

It also added that the additional levy on crude palm oil exports from Indonesia this month will be 12.5% ​​of the reference price, or almost $128.70 per tonne.

Indonesia is introducing state controls on palm oil and raw material exports. The goal is to save up to $150 billion a year, which authorities say is lost in logistics and opaque schemes, and to improve tax collection.

Tags: Indonesia, prices, palm oil