Base prices for crude palm oil (CPO) and its by-products will be kept unchanged for another month, the trade and industry ministry said on Thursday.
The current base prices, used to calculate export taxes, will remain valid until July 12.
"We will leave the base prices the same as world CPO because local prices have been declining," said Director-General of International Trade Sudan S.A.
Indonesia currently imposes a three percent tax on CPO and palm kernel and a one percent tax on refined, bleached and deodorised (RBD) palm oil, RBD palm olein and crude olein.
Indonesia levies the tax to control the flow of palm oil exports, which usually rise sharply when the rupiah weakens and international prices increase.
The Indonesian Palm Oil Commission projected exports for 2004 would reach 6.5 million tonnes, up slightly from 6.4 million tonnes last year. Production is expected to climb to more than 10 million tonnes on good weather and better yields, compared with 9.6 million tonnes last year.
At the state marketing centre's BI-weekly tender on Tuesday, CPO traded at 3,928 rupiah/kg ($0.42), FOB Teluk Bayer, or down some seven percent from a week.
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