Indonesia raises export duty on palm oil

Indonesia raises palm oil base price to $839.53 per ton in September.

On September 1, foreign media reported that Indonesia’s Trade Ministry said the world’s largest palm oil supplier is raising the benchmark price of palm oil to $839.53 per ton in September, up from $820.11 in August. The total export duty will be $142 per ton in September, compared with $118 per ton in August.

The changes come as part of policy support for domestic demand for palm oil. Earlier, Indonesia revised its domestic palm oil (DMO) commitment rules, raising the ceiling price from Rp 14,000 to Rp 15,700 per liter and lowering the target for mandatory oil sales from 300,000 to 250,000 tons per month. The country also plans to increase palm oil-based biodiesel production from 13 million to 16 million kiloliters and increase the share of palm oil-based biodiesel from the current 35% to 50%.

Tags: palm oil, Indonesia