Tridge summary
Indonesia plans to increase its export levy for crude palm oil (CPO) from 7.5% to 10% to finance higher biodiesel subsidies. The move is in support of the government's mandatory biodiesel programme, which is increasing the bio-content from 35% to 40% starting January 1. This is expected to boost the subsidy requirement, leading to the increase in the levy. However, the palm oil industry is concerned that a higher levy will reduce the competitiveness of Indonesian exports.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
Indonesia will increase its export levy for crude palm oil (CPO) to 10% from the current 7.5% to finance higher biodiesel subsidies, its chief economic minister said on Thursday. The levy will be implemented once the relevant finance ministry regulation has been issued, Airlangga Hartarto said. Indonesia, the world’s top palm oil producer, collects levies to help subsidise its mandatory biodiesel programme, in which bio-content will be increased to 40%, called B40, starting Jan. 1 from the current 35%. The higher blend is expected to increase the subsidy requirement. BPDPKS, the agency in charge of collecting and managing the palm oil funds, estimated in November that increasing the mandatory blend of biodiesel to 40% would increase the subsidy requirement by 68%. “There will be funding from BPDPKS … First, we will increase the levy to 10%,” Airlangga said when asked about the subsidy financing. Palm oil currently costs around $400 per metric ton more than crude oil. Indonesia ...
Source: Hellenic Shipping News
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