Indonesia's Ministry of Trade re-introduces a USD $3 per ton export tax for crude palm oil (CPO) shipments in January 2017 as the government's reference palm oil price exceeded the USD $750 per ton threshold that separates the existence of export duties from zero rates. The government's reference price was set at USD $788.26 per ton for January 2017, said Dody Edward, Director General for Foreign Trade at the Trade Ministry.
Compared to the previous month, Indonesia's reference palm oil price rose 5.18 percent (m/m) or USD $38.79 to USD $788.26 per ton in January 2017. Thanks to the El Nino and La Nina weather phenomenons (and a moratorium on new palm oil concessions) CPO output was curtailed in Indonesia in 2015 and 2016, implying some upward pressure for CPO prices. Indonesia is the world's largest producer and exporter of crude palm oil (followed by Malaysia). Most of Indonesia's CPO exports are shipped to India, the European Union, China, Pakistan, the Middle East, and Africa.
Meanwhile, the government's reference price for cocoa beans in January 2017 fell 8.96 percent (m/m) to USD $2,343.97 per ton. Edward said this decline was caused by the drop in international cocoa bean prices. The export tax on cocoa beans stays at 5 percent in the first month of 2017.
Indonesia's Reference Crude Palm Oil Price:
Source: Trade Ministry of Indonesia
Indonesian Palm Oil Production and Export Statistics:
(in USD billion)
¹ indicates forecast
Sources: Indonesian Palm Oil Producers Association (Gapki) & Indonesian Ministry of Agriculture