Indonesia said it might cut its export taxes on palm oil this month inorder to boost exports. According to Indonesian Trade and IndustryMinister, Luhut Pandjaitan, Indonesian are discussing ways to make theirpalm oil more competitive. They may lower or scrap the tax of CPO (crudepalm oil) and its by-products or only the by-products. Indonesia, theworld's second largest palm oil producer after Malaysia, currently imposesa five percent export tax on CPO and a two percent tax on Refined,Bleached and Deodorised (RBD) Palm Oil, RBD palm olein and crude olein.Pandjaitan last month said that he and Finance Minister PrijadiPraptosuhardjo made a commitment to scrap the export taxes in January. ButPrijadi later said the government had not decided on the matter as itstill had to ensure a smooth supply for domestic consumption.
ECONOMICS & INDUSTRY DEVELOPMENT DIVISION
Malaysian Palm Oil Board ( MPOB )
Lot 6, SS6, Jalan Perbandaran,
47301 Kelana Jaya,
Selangor Darul Ehsan,
Tel : 603 - 7802 2800 || Fax : 603 - 7803 3533