Indonesia, the world’s top palm oil producer, may slash export taxes on crude palm oil to compete with Malaysia, which recently lowered its export tax on CPO to zero percent.
Trade Minister Gita Wirjawan said on Friday that the tax reduction was needed to generate a competitive edge, but that it should still help spur growth in the downstream industry.
“Ideally, it should be zero to allow us to compete with the rival, which applies zero percent. But will it support the development of our downstream industry?” Gita told reporters at his office in Jakarta. Gita added that he had consulted with Industry Minister MS Hidayat over the competitiveness issue, and agreed to take the necessary measure.
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