Indonesian Palm Levy Delays Frustrate Traders, Undermine Biodiesel Goals

(Reuters Photo/Roni Bintang)

Repeated delays to the introduction of a levy on palm oil shipments from Indonesia are frustrating traders, who find it hard to set prices, and have raised doubts over whether the levy will be successful in generating planned biodiesel subsidies.

The levies were announced in March and President Joko Widodo signed a regulation in May to impose $50 per ton on shipments of crude palm oil (CPO) and $30 for processed palm oil products from the top producing country.»