JAKARTA/NUSA DUA: Indonesia has scrapped its export levy for all palm oil products until Aug. 31 in a fresh attempt to boost exports and ease high inventories, finance ministry officials said on Saturday, adding the move would not disrupt government revenues.
The decision by the world’s biggest palm oil exporter could further depress prices, which have fallen by about 50% since late April to their lowest in over a year. Indonesian palm oil producers have been struggling with high inventories since the country imposed a three-week export ban through to May 23 to reduce domestic cooking oil prices.
Palm posts nearly 14% weekly drop on lower exports
Since lifting the ban, Jakarta has implemented rules on mandatory local sales - known as the domestic market obligation (DMO) - to keep produce at home to be made into cooking oil.
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