Equity Analysis /

ASEAN : Agribusiness - Higher levy taking the cream off planters

    Ivy Ng Lee
    Ivy Ng Lee

    Head of Malaysia Research, Regional Head of Agribusiness

    25 March 2022
    Published by

    We are negative on reports that Indonesia plans to raise the maximum export levy on CPO exports from US$375/tonne to US$575-675 per tonne. This will reduce Indonesian palm oil producers’ ability to fully benefit from rising international CPO price. The tax changes will not affect our earnings forecasts for FY22-24F but we turn less positive on Indonesia planters’ earnings prospects.