Indonesia to cut palm oil export tax?
INDONESIA may cut a 40% tax on exports of crude palm oil, offering relief to foreign and domestic investors in oil palm plantations.
Indonesia put a 60% tax on crude palm oil exports last year, and 55% on processed oil. The measures were taken to ensure cheap domestic supplies when a fall in the rupiah exchange rate encouraged exports.
The tax depressed earnings of plantations that had hoped for export revenues and encouraged smuggling.
The shortage of palm oil turned to oversupply when the rupiah rebounded last autumn.
- Financial Times 26/01/99 page 30 (News Digest)