According to commerce minister Zulkifli Hasan, Indonesia extended its policy of not collecting levies for exports of palm oil until October 31.
He claimed that the choice was made to support farmer prices for palm oil fruits and stimulate the export of palm oil. The July policy was supposed to be in effect through the end of this month.
Earlier in July, Indonesia had declared that slashing its export levy for all palm oil products until August 31 in a fresh attempt to increase exports and ease elevated inventories, finance ministry officials expressed on Saturday, adding the move would not disrupt government more profits.
Indonesian palm oil producers had been facing issues with high inventories since the country imposed a three-week export ban through to May 23 to diminished domestic cooking oil prices. Acquire a list of Indonesia Importers Directory
Furthermore, Jakarta has put in place regulations on required local sales, or the domestic market obligation (DMO), to retain produce at home to be converted to cooking oil once the prohibition was lifted.