Indonesian Export Levy Update

M. P. Evans Group PLC

27 September 2024

 

M.P. EVANS GROUP PLC

("Company", "Group" or "M.P. Evans")

INDONESIAN GOVERNMENT ANNOUNCES REDUCTION IN EXPORT LEVY

M.P. Evans Group PLC, a producer of sustainable Indonesian palm oil, notes the recent announcement by the Indonesian government regarding changes to its export levy for crude palm oil ("CPO"), which are effective immediately. Previously, the levy was charged at graduated amounts, increasing in US$50 per tonne bands. This approach is being replaced with a lower 7.5% export levy. As before, the levy is set monthly based on a reference price connected to the global CPO commodity price. There is no change to the separate export tax which continues to be charged in increasing amounts at each US$50 per tonne price band.

The combined effect of the export tax and levy prior to the change is shown in table 1 in the Annex, with table 2 showing the position after the amendment, including the levy as a result of the new approach. At all prices shown in the table, the amendment leads to a reduction in the export levy charged by the Indonesian government.

As reported in the Company's 2024 interim report, published on 16 September 2024, the Group continues to receive higher mill-gate prices than the US$771 per tonne average in the first half of the year, with current pricing well in excess of US$800 per tonne.

Whilst not expecting a material impact from the changes to the export levy, management will continue to monitor the pricing environment in the coming months as the new arrangements are introduced.

Enquiries:

M.P. Evans Group PLC	Telephone: [phone]
Peter Hadsley-Chaplin, chairman
Matthew Coulson, chief executive
Luke Shaw, chief financial officer
Cavendish Capital Markets (Nomad and broker)	Telephone: [phone]
Matt Goode, George Lawson (Corporate finance)
Tim Redfern, Harriet Ward (ECM)
Hudson Sandler (Financial PR)	Telephone: [phone]
Charlie Jack, Francis Kerrigan, Francesca Rosser

ANNEX

Table 1 - combined export tax and levy prior to change (US$ per tonne)

Reference price					Net price at top of
From	To	Levy	Tax	Total	band
0	680	55		55	625
681	730	65	3	68	662
731	780	75	18	93	687
781	830	85	33	118	712
831	880	90	52	142	738
881	930	95	74	169	761
931	980	100	124	224	756
981	1,030	105	148	253	777
1,031	1,080	110	178	288	792
1,081	1,130	115	201	316	814
1,131	1,180	120	220	340	840
1,181	1,230	140	240	380	850
1,231	1,280	160	250	410	870
1,281	1,330	180	260	440	890
1,331	1,380	200	270	470	910
1,381	1,430	220	280	500	930
1,431	and above	240	288	528

Table 2 - new combined export tax and levy (US$ per tonne)

Reference price					Net price at top of	Saving to prior
From	To	Levy	Tax	Total	band	structure
0	680	51		51	629	4
681	730	55	3	58	672	10
731	780	59	18	77	703	16
781	830	62	33	95	735	23
831	880	66	52	118	762	24
881	930	70	74	144	786	25
931	980	74	124	198	782	26
981	1,030	77	148	225	805	28
1,031	1,080	81	178	259	821	29
1,081	1,130	85	201	286	844	30
1,131	1,180	89	220	309	871	31
1,181	1,230	92	240	332	898	48
1,231	1,280	96	250	346	934	64
1,281	1,330	100	260	360	970	80
1,331	1,380	104	270	374	1,006	96
1,381	1,430	107	280	387	1,043	113
1,431	and above		288

 

END