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Indonesia issued Ministry of Finance Regulation No. 136/PMK.05/2019 on December 4, 2018, exempting palm oil and derivative product exports from the plantation fund tariff. The exemption is listed as liberalising and is set to be revoked on February 28, 2019.
The measure follows the broader levy changes.
Removing the plantation fund tariff lowers export costs for Indonesian palm products and adds supply to an oversupplied market. This is bearish for palm oil prices while the exemption remains in force.
globaltradealert.orgDec 4, 2018After 400 past bearish policy events, Palm Oil moved a median -0.0% over 5 sessions (49% higher; middle half -1.3% to +1.1%), and +0.2% 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.
