Equity Analysis /
Asia

ASEAN : Agribusiness - Higher levy taking the cream off planters

    Ivy Ng Lee
    Ivy Ng Lee

    Head of Malaysia Research, Regional Head of Agribusiness

    CGS-CIMB
    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.