JAKARTA, Aug 31: The Indonesian palm oil market saw no auctions on Friday amid nerves ahead of the announcement of a new palm oil tax policy and a lack of price leads as the Malaysian market was closed for a national holiday.

There were no auctions either at the state marketing centre or in North Sumatra’s Medan, the key port for palm oil exports.

Players did their trading yesterday. But we’re also waiting for the new palm oil export tax, said a trader in Medan.

The Trade Ministry has said the government plans to increasethe export tax to 9-10 per cent from 6.5 per cent if global crude palm oil prices rise above $850 a ton and it would impose a zero per cent export tax if prices fall below $500.

Indonesia is also planning to scrap a 10 per cent value-added tax on crude palm oil sold to cooking oil processors, Agriculture Minister Anton Apriyantono said on Wednesday.

The new polices, which are due to be imposed in early September, are meant to curb rising cooking oil prices in the country which have soared almost 30 per cent this year powered by rising global prices of crude palm oil.

Dealers also noted a lack of price leads from Malaysian crude palm oil futures as markets in the country were closed for a national holiday also dampened trading interest.

There is no price quotation from neither buyers nor sellers because Malaysia is closed today, said another dealer in Medan.

Indonesia palm oil prices often track prices at the Malaysian crude palm oil futures.—Reuters