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.