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Indonesia is raising its progressive export levy on crude palm oil from Thursday, December 10, under Finance Ministerial Regulation No. 191/2020. The levy ranges from $55 to $255 per tonne depending on the reference price, replacing a flat $55 rate.
The government says the change will help fund its 30% biodiesel mandate.
The higher levy tightens Indonesian export economics and supports the biodiesel program, which absorbs palm oil domestically. This adds upward pressure on global palm oil prices, with knock-on effects for soybean oil and feed fats.
thejakartapost.comAdrian Wail AkhlasDec 10, 2020After 548 past bullish policy events, Palm Oil moved a median +0.4% over 5 sessions (61% higher; middle half -0.7% to +2.1%), and +0.9% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
