After weeks of speculation, Indonesia confirmed its palm oil export levy top rate will be reduced to US$175/ton from US$255 previously. Finance Minister Sri Mulyani Indrawati said. There are no changes expected to the export tax.
The decree is yet to be issued where the effective date will be published accordingly.
Other changes which we previously reported include a rise of US$20 instead of a US$50 step-rise. The corresponding rise in derivatives products will be US$16.
July reference price and the corresponding tax rate will be announced this week. The CPO reference price and tax rate are likely to fall.