Indonesia May Increase Reference Price for Palm Oil Export Tax

By Bambang Dwi Djanuarto and Naila Firdausi

Oct. 16 (Bloomberg) -- Indonesia, the world's biggest producer of palm oil, is considering an increase in the minimum reference price for the tax on crude palm oil exports after prices fell and producer costs increased.

The government ``may raise the lower reference limit for the export tax to $650 or $750'' a metric ton, Anton Apriyantono, Indonesia's agriculture minister, told reporters in Jakarta. He will discuss the plan with Trade Minister Mari Pangestu, he said.

Indonesia in February set taxes on palm oil exports linked to the global price of the commodity, setting $550 a ton as the minimum price that triggers the obligation to pay export tax.

To contact the reporters on this story: Naila Firdausi in Jakarta at nfirdausi@bloomberg.net; Bambang Dwi Djanuarto in Jakarta at Or bdjanuarto@bloomberg.net.