Indonesia will keep the base price for crude palm oil (CPO) and its by-products unchanged for another month, the trade ministry said on Thursday. The current base price, used to calculate export taxes, will remain valid until December 12, the ministry said in a statement. Indonesia currently imposes a 3 percent tax on CPO and palm kernel and a 1 percent tax on refined, bleached and deodorised (RBD) palm oil, RBD palm olein and crude olein.
The tax is levied to control the flow of palm oil exports, which usually rise sharply when the rupiah weakens and international prices increase.
Industry officials have forecast Indonesia's palm oil output will rise around 10 percent this year to 10.5-11 million tonnes helped by good weather and improved yields.
The world's second-biggest palm oil producer exports around 6.5 million tonnes a year to markets in India, China and Europe.
At the state marketing centre's tender on Thursday, CPO prices inched up around 1 percent at 3,658 rupiah ($0.40) per kg, FOB Begawan/Dubai, compared with last month.
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