The Indonesian government is reviewing its crude palm oil (CPO) exports policy to increased competitiveness with Malaysian products in order not to lose export markets, local media reported here Thursday.

"It (the policy) is still in discussions and we expect it will be issued in the near future, to compete the Malaysian new CPO exports policy," said Minister of Agriculture Suswono, quoted by the Antara news wire.

He said the new or maybe the revised exports policy is to face competitiveness with Malaysian products. Starting January 2013, Malaysia cut its CPO export tariffs to compensate CPO price decline in recent months.

The final decision of the policy will be excecuted by Coordinating Minister for the Economy Hatta Rajasa. He expected Indonesia and Malaysia, as the world largest CPO producer countries, can work together side by side as world pricemaker in CPO.

The new CPO exports policy that imposed by Malaysia starting January 2013 potentially could harm Indonesia's CPO in world markets, especially India as Indonesia's main export destination of CPO.

Malaysia will adopt a progressive export tariffs by 4.5 percent when the CPO price reaches 2,250 to 2,400 Malaysian ringgit ( around 738.200 to 787.413 U.S. dollars) per metric ton and by 8.8 percent when the CPO price reaches 3,450 to 3,600 Malaysian ringgit (around 1,132.03 to 1,181.25 U.S.dollars) per metric ton.

Recently Malaysia imposed export tariffs on CPO by 23 percent. Endi

Go to Forum >>0 Comment(s)