Indonesia has kept palm oil export tax rates unchanged at 9 percent and 10 percent for January depending on the product, while rising the base export prices for some palm oil by-products in line with global prices, a trade ministry official said on Saturday.
The base export price for crude palm oil has been raised to $869 a tonne from $862 a tonne in December, while the rate for refined, bleached, deodorised (RBD) palm olein - used as cooking oil - has also been raised to $917 from $902 in December.
"Crude palm oil prices in international markets averaged $938 a tonne in the previous month (December) which means palm oil export tax rates for January are unchanged at 9 and 10 percent," Diah Maulida, director general of foreign trade at the ministry, told Reuters. The government did not change the export tax rates for crude palm oil and RBD palm olein of 10 percent for January. Both new palm oil base export prices and export taxes will be effective from January 1 to January 31.
Crude palm oil makes up 45 percent of the country's palm oil exports. Higer priced palm oil-by products such as RBD palm olein make up the rest. Made by crushing fresh fruit, the reddish-brown oil is the world's second most popular oil after soy and is used in the production of a wide range products from toothpaste to ice cream and biofuel.
Indonesia is set to overtake Malaysia as the world's top palm oil producer with production expected to hit 17 million tonnes this year, up from 15.9 million tonnes last year.
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