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NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

10/02/2001

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

NULL

CATEGORY

HEADLINE

INDONESIA CPO TAX CUT SEEN NOT HURTING KL MARKET
KUALA LUMPUR, Feb 9 (Reuters) - Indonesia's move to cut its export taxeson crude palm oil and by-products is likely to hurt Malaysian palm oilprices, traders said on Friday.Indonesia, the world's largest palm oil producer after Malaysia, said itwill cut export taxes on crude palm oil (CPO) to three percent affectiveMarch 1.Traders said the move was widely expected by the market but it couldintensify the palm oil war between the two neighbouring countries, the toppalm oil producers in the world.The Indonesian Finance Ministry said in a decree obtained on Friday thatexport taxes on crude olein, on RBD palm olein would also be cut to onepercent from two percent.The move followed Malaysia's decision to allow one million tonnes of crudepalm oil be exported duty free this years.Last year, the government allowed duty-free export of 500,000 tonnes in amove to reduce domestic stocks and maintain its market share.Malaysian palm oil prices barely moved in late afternoon trade after thenews."Its has been very minimal," said on trader in Kuala Lumpur.Malaysian imposes an export tax on a graduated scale starting at 10percent for prices above 650 ringgit to protect its refiners.

 

 

REUTERS