Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>Agriculture  >>Indonesia may zero palm oil tax
NEW UPDATES Asean Affairs  29 September 2014  

Indonesia may zero palm oil tax

Indonesia is preparing itself for a frenzy of palm-oil exports as producers look to take advantage of the the ensuing tax cut set by the government.

Exports of crude palm oil (CPO) will likely be exempt from export tax in October, down from 9 percent this month, if prices continue to plunge from US$740 per metric ton to around the $650-660 benchmark, according to Deputy Trade Minister Bayu Krisnamurthi.

“[The export tax] in October will likely be zero percent because the prices are lower [than the average price set in a regulation],” he said on Friday.

Indonesia sets the monthly export tax according to a formula based on average prices in Jakarta, Rotterdam and Kuala Lumpur. Crude shipments attract no tax if the average rate is $750 or less over a four-week period, with rates escalating from 7.5 percent to 22.5 percent at higher average prices.

In addition to CPO, exports of 27 other palm products, including olein, will likely also be free from tax.

As a consequence of the zero export tax, exporters will have free rein to lure more buyers amid unprecedented high palm-oil output in Southeast Asia to prevent a build-up in stockpiles.

Bayu, however, warned oil-palm growers that offsetting the balance would further drive down prices.

“I urge growers and exporters not to ship excessive volumes [of CPO] because that would drive down demand, which remains unchanged at the moment,” he said.

Food prices fell to the lowest in almost four years in August as the cost of cooking oils tumbled along with milk and cheese, the United Nations’ Rome-based Food and Agriculture Organization said on Sept. 11, Bloomberg reported.

The FAO vegetable-oil index slipped to 166.6 points from 181.1 points amid an improved outlook for palm-oil production in Southeast Asia and lower-than-forecasted import demand from China and India.

Malaysia, the world’s second largest palm-oil producer after Indonesia, removed its export tax on CPO for September and October to help push up outbound shipments and avert a further slide in prices, which has already plunged to a
five-year low.

The tax removal was expected to boost Malaysia’s exports by 600,000 metric tons and help contain stockpiles at 1.6 million tons at the end of this year.

Previously, production in Indonesia was expected to reach an all-time high of 30.5 million tons or more this year, compared to Malaysia’s output of around 19.7 to 19.9 million tons, according to Dorab Mistry, director of Godrej International Ltd.

Together, Indonesia and Malaysia make up 86 percent of global palm-oil production.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                            September 29, 2014 Subsribe Now !

• US businessmen want ASEAN to reform customs
Subcribe: Asean Affairs Global Magazine
• Indonesia may zero palm oil tax
• Krakatau cuts 1,500 workers amid continuous losses
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• ASEAN FMs hold informal talks in NY
• Electrifying the ASEAN countries
Asean Analysis                    September 26, 2014

• Asean Analysis September 26, 2014
Southeast Asia’s major domestic appliances sector reached nearly USD5.8 billion in past 12 months: GfK
Advertise Your Brand

Asean Stock Watch    September  26, 2014
• Asean Stock Watch-September 26, 2014
The Biweekly Update
• The Biweekly Update  September 19, 2014

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand