Indonesian Export Tax Update

RNS Number : 5359P
M. P. Evans Group PLC
21 June 2022
 

M.P. EVANS GROUP PLC

("the Group" or "M.P.Evans")

 

INDONESIAN GOVERNMENT ANNOUNCES REVISIONS TO EXPORT TAXES

M.P.Evans Group PLC, a producer of sustainable Indonesian palm oil, notes the recent announcement by the Indonesian government regarding two sets of revisions to its palm-oil export duty and levy. The first set of revisions (shown in table 1 in the Annex) is effective from 14 June 2022 to 31 July 2022 and results in a decrease in the combined duty and levy payable by the Group of up to US$87 per tonne, dependent on the reference price of crude palm oil ("CPO") used, which is closely linked to the cif Rotterdam price. However, for the period up to 31 July 2022, the Indonesian government is also introducing a US$200 per tonne export tariff, to be charged in addition to the export duty and levy.

 

From 1 August 2022, at which point the export tariff will no longer apply, a second set of revisions (shown in table 2 in the Annex) will be introduced. This will result in a decrease of up to US$47 per tonne in the combined export duty and levy, payable by the Group compared to the duty and levy in place prior to 14 June 2022.

 

As reported in the trading statement published on 10 June 2022, the Group achieved an average mill-gate price for its sales of crude palm oil of US$1,079 per tonne in the first five months of 2022, compared with US$715 for the same period in 2021. Following the government's revisions to the export duty and levy, coupled with a softening in the cif Rotterdam price, recent mill-gate prices achieved have been around US$750 per tonne.

 

Management will continue to monitor the situation closely as the new arrangements come into force.

 

21 June 2022

 

 

 

Enquiries:

M.P. Evans Group PLC

Telephone: 01892 516333

Peter Hadsley-Chaplin - chairman


Matthew Coulson - chief executive




Peel Hunt LLP (Nomad and joint broker)

Telephone: 020 7418 8900

Dan Webster, Andrew Clark, Lalit Bose




finnCap (Joint broker)

Telephone: 020 7220 0500

Tim Redfern, Harriet Ward




Hudson Sandler (Financial PR)

Telephone:  020 7796 4133

Charlie Jack, Francis Kerrigan


 

 

 

 

 

 

 

 

 

ANNEX

Table 1 - updated structure to 31 July 2022

Reference price

 

 

 

Net price at top of

Net price under prior

From

To

 Levy

Tax

 Total

band

structure

0

750

55


55

695

695

751

800

75

3

78

722

722

801

850

95

18

113

737

737

851

900

115

33

148

752

752

901

950

135

52

187

763

763

951

1,000

145

74

219

781

771

1,001

1,050

150

124

274

776

782

1,051

1,100

155

148

303

797

789

1,101

1,150

160

178

338

812

791

1,151

1,200

165

201

366

834

799

1,201

1,250

170

220

390

860

812

1,251

1,300

175

240

415

885

825

1,301

1,350

180

250

430

920

855

1,351

1,400

185

260

445

955

885

1,401

1,450

190

270

460

990

915

1,451

1,500

195

280

475

1,025

945

1,501

and above

200

288

488


 

 

 

Table 2 - updated structure from 1 August 2022

Reference price

 

 

 

Net price at top of

Net price under prior

From

To

 Levy

Tax

 Total

band

structure

0

750

55


55

695

695

751

800

75

3

78

722

722

801

850

95

18

113

737

737

851

900

115

33

148

752

752

901

950

135

52

187

763

763

951

1,000

150

74

224

776

771

1,001

1,050

165

124

289

761

782

1,051

1,100

180

148

328

772

789

1,101

1,150

190

178

368

782

791

1,151

1,200

200

201

401

799

799

1,201

1,250

210

220

430

820

812

1,251

1,300

215

240

455

845

825

1,301

1,350

220

250

470

880

855

1,351

1,400

225

260

485

915

885

1,401

1,450

230

270

500

950

915

1,451

1,500

235

280

515

985

945

1,501

and above

240

288

528


 

 

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