Indonesia’s palm oil groups urge levy cuts to offset US tariff impact

Indonesia’s palm oil industry and farmer groups on Wednesday urged the government to reduce export costs, to offset the impact of market distortion caused by 32 per cent U.S. reciprocal tariffs on Indonesia’s exports. Palm smallholders’ group SPKS called on the government to lower costs by removing an export tax and levy, saying the U.S. tariff would result in an up to 3 per cent fall in the price farmers receive for palm fresh fruit bunches. “SPKS estimated President Trump’s tariffs will distort demand for CPO and palm oil products,” the group’s chairman Sabarudin said in a statement. “The drop in prices at farmers’ level could be offset by the reduction of export tax and levy down to 0 per cent to help stabilise prices of palm fruits,” he added. Indonesia collects a total of $196 per metric ton export tax and levy on crude palm oil shipments Already on Tuesday, Indonesia said it would adjust its palm oil export tax, which should reduce the burden of the U.S. tariffs on ...