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Harry Hartanto, head of the South Sumatra palm oil association (GAPKI), said the government's crude palm oil export levy remains relevant because its proceeds fund replanting, road repairs and biodiesel subsidies. He responded to a smallholder group's call to scrap the levy.
He noted that palm oil prices have fallen to a six-year low amid high global supply.
Keeping the levy funds domestic biodiesel subsidies, which can absorb surplus palm oil, but it also widens the gap between Indonesian and world prices. Net effect on global palm oil prices is limited while the levy stays in place.
sumsel.antaranews.comDolly RosanaMay 5, 2017After 513 past neutral policy events, Palm Oil moved a median 0.0% over 5 sessions (50% higher; middle half -1.6% to +1.4%), and -0.1% 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.
