Newly implemented export fee for Indonesian crude palm oil in December 2020

Today marks the first day of new regulations regarding the export fee for crude palm oil (CPO) that has been set at USD 55/MT, up from the export fee at the beginning of the month at USD 33/MT. This new regulation is intended to motivate the national palm oil industry to export this commodity in its derivative forms (finished products) such as palm kernel oil or shortening, instead of exporting it as raw commodities. Subsequently, this newly implemented policy has caused quite a resistance among CPO exporters in Indonesia who have expressed their concern stating that the higher export fee would lower their power to compete in the global market and they are currently lobbying the re-evaluation of this policy. It is unclear whether the negotiation will bring changes to the export fee in January 2021.