Latest news with #IndonesiaPalmOilAssociation
Business Recorder
18-05-2025
- Business
- Business Recorder
Indonesia palm oil group GAPKI urges govt to delay levy hike
JAKARTA: The Indonesia Palm Oil Association, GAPKI, on Friday urged the government to delay a planned hike in the palm oil export levy warning it could harm competitiveness amid global trade uncertainties due to the US tariffs and geopolitical tension. Indonesia is due to raise its palm oil export levy to between 4.75% and 10% from May 17 to help fund a biodiesel blending mandate as well as a palm oil replanting programme. The levy currently stands at 3% to 7.5%. 'The situation is full of uncertainties and it is a big risk to launch a policy that will impact competitiveness of Indonesia's palm oil exports,' GAPKI said in a letter addressed to Finance Minister Sri Mulyani Indrawati. Indonesia, the world's biggest palm oil producer, is facing proposed US tariffs of 32%, while number two producer Malaysia faces a 24% rate. The tariffs have been put on hold until July. 'It is feared that this will make Indonesian palm oil exports increasingly uncompetitive compared to Malaysia, especially for the US market which is currently dominated by Indonesia,' the group said. Malaysia charges an export duty of between 3% and 10%, depending on the price of palm oil. For May, the duty has been set at 10%. Sri Mulyani Indrawati said previously that Indonesia would adjust its crude palm oil export tax to reduce the burden on exporters from US tariffs. The tax is separate to the levy. Meanwhile, heightened tension between major palm oil buyers India and Pakistan has sparked concern about reduced demand, GAPKI said. 'There is no permanent ceasefire between India and Pakistan yet that had caused buyers from both nations to delay purchase of crude palm oil and its derivatives,' the group added. The finance ministry and coordinating ministry of economics did not immediately respond to a request for comments.
Business Recorder
17-05-2025
- Business
- Business Recorder
Indonesia palm oil group GAPKI urges government to delay levy hike
JAKARTA: The Indonesia Palm Oil Association, GAPKI, on Friday urged the government to delay a planned hike in the palm oil export levy, warning it could harm competitiveness amid global trade uncertainties due to the U.S. tariffs and geopolitical tension. Indonesia is due to raise its palm oil export levy to between 4.75% and 10% from May 17 to help fund a biodiesel blending mandate as well as a palm oil replanting programme. The levy currently stands at 3% to 7.5%. 'The situation is full of uncertainties and it is a big risk to launch a policy that will impact competitiveness of Indonesia's palm oil exports,' GAPKI said in a letter addressed to Finance Minister Sri Mulyani Indrawati. A spokesperson for the palm oil fund that collects the levy said GAPKI's request will be discussed at a meeting with government ministries next week. The finance ministry and coordinating ministry of economic affairs did not respond to a request for comment. Indonesia, the world's biggest palm oil producer, is facing proposed U.S. tariffs of 32%, while number two producer Malaysia faces a 24% rate. The tariffs have been put on hold until July. 'It is feared that this will make Indonesian palm oil exports increasingly uncompetitive compared to Malaysia, especially for the U.S. market which is currently dominated by Indonesia,' the group said. Palm ends with third straight weekly loss Malaysia charges an export duty of between 3% and 10%, depending on the price of palm oil. For May, the duty has been set at 10%. Sri Mulyani Indrawati said previously that Indonesia would adjust its crude palm oil export tax to reduce the burden on exporters from U.S. tariffs. The tax is separate to the levy. Meanwhile, heightened tension between major palm oil buyers India and Pakistan has sparked concern about reduced demand, GAPKI said. 'There is no permanent ceasefire between India and Pakistan yet that had caused buyers from both nations to delay purchase of crude palm oil and its derivatives,' the group added.
New Straits Times
16-05-2025
- Business
- New Straits Times
Indonesia palm oil group urges government to delay levy hike
JAKARTA: The Indonesia Palm Oil Association, GAPKI, on Friday urged the government to delay a planned hike in the palm oil export levy, warning it could harm competitiveness amid global trade uncertainties due to the US tariffs and geopolitical tension. Indonesia is due to raise its palm oil export levy to between 4.75 per cent and 10 per cent from May 17 to help fund a biodiesel blending mandate as well as a palm oil replanting programme. The levy currently stands at three per cent to 7.5 per cent. "The situation is full of uncertainties and it is a big risk to launch a policy that will impact competitiveness of Indonesia's palm oil exports," GAPKI said in a letter addressed to Finance Minister Sri Mulyani Indrawati. Indonesia, the world's biggest palm oil producer, is facing proposed US tariffs of 32 per cent, while number two producer Malaysia faces a 24 per cent rate. The tariffs have been put on hold until July. "It is feared that this will make Indonesian palm oil exports increasingly uncompetitive compared to Malaysia, especially for the US market which is currently dominated by Indonesia," the group said. Malaysia charges an export duty of between three per cent and 10 per cent, depending on the price of palm oil. For May, the duty has been set at 10 per cent. Sri Mulyani Indrawati said previously that Indonesia would adjust its crude palm oil export tax to reduce the burden on exporters from US tariffs. The tax is separate to the levy. Meanwhile, heightened tension between major palm oil buyers India and Pakistan has sparked concern about reduced demand, GAPKI said. "There is no permanent ceasefire between India and Pakistan yet that had caused buyers from both nations to delay purchase of crude palm oil and its derivatives," the group added. The finance ministry and coordinating ministry of economics did not immediately respond to a request for comments.
