CGS-CIMB Securities maintained a 'neutral' rating to the country's agribusiness sector following the revision of Indonesia's palm oil export levy effective today.
According to him, the change could be negative for Malaysian palm oil producers if part of the savings is channeled to consumers, causing the international price of crude palm oil (CPO) to be lower.
However, the stockbroking company was quite positive to the downstream processor of MSM Malaysia as the revision of the export levy reduced the advantage of Indonesian processors.
“Malaysia will remain competitive compared to Indonesia in exporting CPO under the new export levy system as Malaysia's CPO ceiling export tax rate is eight per cent lower than Indonesia's combined export tax and levy, which is about seven to 29% of the CPO reference price. , ”He said as reported by Bernama.
CGS-CIMB said the main change from the implications of the new export levy structure was the tariff, which the rising export levy had raised as CPO prices rose to more than US $ 750 a tonne from US $ 670 a tonne previously.
In addition, the rate of increase in the levy is currently an increase of US $ 20 per tonne for every increase of US $ 50 per tonne for palm -based products such as CPO compared to US $ 15 per tonne for every US $ 25 per tonne increase in CPO prices previously.
“The new maximum export levy rate is US $ 175 per tonne compared to US $ 255 per tonne for the previous structure. This translates into savings of US $ 80 per tonne, ”he explained.
The last time the Indonesian government reviewed the export levy structure for palm oil exports was on 10 December 2020.
