Indonesia cuts 1H February palm export taxes, levies
Indonesia has decreased export taxes and levies on palm products for 1-15 February after the crude palm oil (CPO) reference price for the same period dropped below $880/t, triggering the lower band of duties and levies.
The CPO reference price dropped by 4pc to $879.31/t for 1-15 February from $920.57/t for 16-31 January, according to Indonesia's trade ministry.
CPO will now be subject to a $52/t export duty, down from $74/t during the previous period, while an export levy of $90/t will apply on the same product, down from $95/t before.
Refined, bleached and deodorized (RBD) palm olein is now subjected to a $12/t duty and a $70/t levy, down from a $26/t duty and a $75/t levy. Palm oil mill effluent (Pome) exports are set to pay $7/t, down from a $8/t export duty, while the levy on this product is unchanged at $5/t. Biodiesel is still not subjected to any duties, but a $60/t levy is now imposed, $5/t lower from the previous period. Used cooking oil (UCO) exporters also do not need to pay any duties, but are subjected to a $35/t levy, unchanged from the previous period. Palm kernel shells (PKS) is subjected to a $6/t duty, $1/t lower from the previous period and an unchanged $3/t levy.
The lower reference price and resulting reduced export tax rates may have been set in an effort to appease Indonesian exporters of palm oil products that have seen their export costs increase after the government reduced the domestic market obligation for CPO, RBD palm olein and UCO to a 6:1 ratio from 1 January 2023. This has made some Indonesian products uncompetitive compared to Malaysian products, one exporter complained.
Indonesia currently uses the previous weeks' Bursa Malaysia CPO futures and delivered CPO prices to the Netherlands' Rotterdam in an unpublished formula to set its bi-monthly reference price. But trade minister Zulkifli Hasan recently urged the country to launch its own CPO benchmark by the middle of this year.
Indonesia export duties as of 9 August 2022 | ($/t) | ||||
Reference price | CPO | RBD olein | PKS | Biodiesel | Pome |
Up to $680 | 0 | 0 | 3 | 0 | 1 |
$680-730 | 3 | 0 | 3 | 0 | 2 |
$730-780 | 18 | 0 | 4 | 0 | 4 |
$780-830 | 33 | 2 | 5 | 0 | 5 |
$830-880 | 52 | 12 | 6 | 0 | 7 |
$880-930 | 74 | 26 | 7 | 0 | 8 |
$930-980 | 124 | 71 | 8 | 32 | 10 |
$980-1,030 | 148 | 88 | 9 | 35 | 11 |
$1,030-1,080 | 178 | 104 | 10 | 37 | 12 |
$1,080-1,130 | 201 | 118 | 11 | 71 | 14 |
$1,130-1,180 | 220 | 137 | 12 | 73 | 15 |
$1,180-1,230 | 240 | 140 | 13 | 77 | 17 |
$1,230-1,280 | 250 | 150 | 13 | 82 | 17 |
$1,280-1,330 | 260 | 160 | 13 | 88 | 17 |
$1,330-1,380 | 270 | 170 | 13 | 93 | 17 |
$1,380-1,430 | 280 | 180 | 13 | 98 | 17 |
>$1,430 | 288 | 192 | 13 | 105 | 17 |
Source: Indonesia finance ministry |
Indonesia export levies as of 1 November 2022 | ($/t) | |||||
Reference price | CPO | RBD olein | PKS | Biodiesel | UCO | Pome |
Up to $680 | 55 | 35 | 3 | 25 | 35 | 5 |
$680-730 | 65 | 45 | 3 | 35 | 35 | 5 |
$730-780 | 70 | 55 | 3 | 45 | 35 | 5 |
$780-830 | 85 | 65 | 3 | 55 | 35 | 5 |
$830-880 | 90 | 70 | 3 | 60 | 35 | 5 |
$880-930 | 95 | 75 | 3 | 65 | 35 | 5 |
$930-980 | 100 | 80 | 3 | 70 | 35 | 5 |
$980-1,030 | 105 | 85 | 3 | 75 | 35 | 5 |
$1,030-1,080 | 110 | 90 | 3 | 80 | 35 | 5 |
$1,080-1,130 | 115 | 95 | 3 | 85 | 35 | 5 |
$1,130-1,180 | 120 | 100 | 3 | 90 | 35 | 5 |
$1,180-1,230 | 140 | 117 | 3 | 107 | 35 | 5 |
$1,230-1,280 | 160 | 137 | 3 | 124 | 35 | 5 |
$1,280-1,330 | 180 | 151 | 3 | 141 | 35 | 5 |
$1,330-1,380 | 200 | 168 | 3 | 158 | 35 | 5 |
$1,380-1,430 | 220 | 186 | 3 | 176 | 35 | 5 |
>$1,430 | 240 | 204 | 3 | 194 | 35 | 5 |
Source: Indonesia finance ministry |
Related news posts
Baltimore opens third temporary shipping channel
Baltimore opens third temporary shipping channel
New York, 22 April (Argus) — A third temporary shipping channel has opened at the Port of Baltimore to allow more vessel traffic around the collapsed Francis Scott Key Bridge. Located on the northeast side of the main channel, the new passage has a controlling depth of 20-ft, a 300-ft horizontal clearance, and a vertical clearance of 135-ft. When combined with two other temporary channels opened earlier this month the port should be able to handle "... approximately 15 percent of pre-collapse commercial activity," said David O'Connell, the federal on-scene coordinator. The main shipping channel of the Port of Baltimore — a key conduit for US vehicle imports and coal exports — is expected to be reopened by the end of May, the Maryland Port Administration said earlier this month. The bridge collapsed into the water late last month when the 116,851dwt container ship Dali lost power and crashed into one of its support columns. Salvage teams have been working ever since to remove debris from the water and containers from the ship in order to clear the main channel. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
TUI Cruises receives methanol-ready ship
TUI Cruises receives methanol-ready ship
New York, 18 April (Argus) — Cruise ship company TUI Cruises took delivery of a methanol-ready cruise ship which will start operations at the end of June. Methanol-ready vessels allow ship owners to easily retrofit their vessels to burning methanol in the future. The 7,900t deadweight Mein Schiff 7 will operate in the North Sea, the Baltic Sea, along the European Atlantic coast and in the Mediterranean and run on marine gasoil (MGO). It was built by Finland's Meyer Turku shipyard. In January, TUI Cruises signed a memorandum of understanding with trading company Mabanaft for future supply of green methanol. Mabanaft would cover TUI's methanol needs in northern Germany, and gradually add other European locations. Grey methanol was pegged at $717/t MGO equivalent and biomethanol at $2,279/t MGOe average from 1-18 April in Amsterdam-Rotterdam-Antwerp. About 0.9 times and 2.9 times, respectively, the price of MGO, Argus assessments showed. TUI Cruises is a joint venture between the German tourism company TUI AG and US-based cruise ship company Royal Caribbean. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK's Drax closes carbon removals deal with C-Zero
UK's Drax closes carbon removals deal with C-Zero
London, 18 April (Argus) — UK utility Drax has signed a deal for carbon removal (CDR) credits with environmental consultancy C-Zero, following an initial agreement between the two parties in May 2023 . C-Zero will purchase CDR credits from Drax representing 2,000t of permanently stored carbon under the terms of the deal, Drax said on 18 April. The deal is indicative of the "maturing carbon market's growing appetite for high-quality carbon removals" and another "concrete step" towards Drax's delivering of bioenergy with carbon capture and storage (Beccs) in the US, the firm said. The deal with C-Zero comes a few weeks after Drax signed a five-year agreement with Karbon-X for CDR credits representing 25,000t of permanently stored carbon. Drax intends to remove at least 6mn t/y of CO2 from the atmosphere through its US Beccs projects . Drax aims to remove and store 8mn t/yr of CO2 from its UK Beccs projects, which are currently awaiting a consultation by the UK government to be finalised. By Marta Imarisio Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Canada furthers investment in GHG reductions
Canada furthers investment in GHG reductions
Houston, 18 April (Argus) — The Canadian government plans to have C$93bn ($67.5bn) in federal incentives up and running by the end of the year to spur developments in clean energy technology, hydrogen production, carbon capture utilization and storage (CCUS) along with a new tax credit for electric vehicle (EV) supply chains. The Canada Department of Finance, in its 2024 budget released on 16 April, said it expects to have the first planned investment tax credits (ITCs), for CCUS and renewable energy investments, in law before 1 June. The ITCs would be available for investments made generally within or before 2023 depending on the credit. The anticipated clean hydrogen ITC is also moving forward. It could provide 15-40pc of related eligible costs, with projects that produce the cleanest hydrogen set to receive the higher levels of support, along with other credits for equipment purchases and power-purchase agreements. The government is pursuing a new ITC for EV supply chains, meant to bolster in-country manufacturing and consumer adoption of EVs with a 10pc return on the cost of buildings used in vehicle assembly, battery production and related materials. The credit would build on the clean technology manufacturing ITC, which allows businesses to claim 30pc of the cost of new machinery and equipment. To bolster reductions in transportation-related greenhouse gas (GHG) emissions, the government will also direct up to C$500mn ($363mn) in funding from the country's low-carbon fuel standard to support domestic biofuel production . Transportation is the second largest source of GHG emissions for the country, at 28pc, or 188mn metric tonnes of CO2 equivalent, in 2021. But the province of Alberta expressed disappointment at the pace of development of ITC support that could help companies affected by the country's move away from fossil fuels. "There was nothing around ammonia or hydrogen, and no updates on the CCUS ITCs that would actually spur on investment," Alberta finance minister Nate Horner said. The incentives are intended to help Canada achieve a 40-45pc reduction in GHG emissions by 2030, relative to 2005 levels. This would require a reduction in GHG emissions to about 439mn t/yr, while Canada's emissions totaled 670mn in 2021, according to the government's most recent inventory. The budget also details additional plans for the Canada Growth Fund's carbon contracts for a difference, which help decarbonize hard-to-abate industries. The government plans to add off-the-shelf contracts to its current offering of bespoke one-off contracts tailored to a specific enterprise to broaden the reach and GHG reductions of the program. These contracts incentivize businesses to invest in emissions reducing program or technology, such as CCUS, through the government providing a financial backstop to a project developer. The government and developer establish a "strike price" that carbon allowances would need to reach for a return on the investment, with the government paying the difference if the market price fails to increase. CGF signed its first contract under this program last year , with Calgary-based carbon capture and sequestration company Entropy and has around $6bn remaining to issue agreements. To stretch this funding further, the Canadian government intends for Environment and Climate Change Canada to work with provincial and territorial carbon markets to improve performance and potentially send stronger price signals to spur decarbonization. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more