Official Announcement Of Indonesia’s Lower Export Levy
Indonesia’s Ministry of Finance has issued a revised regulation on palm oil export levies, which would take effect from Jul 21. This is within our expectations as we had highlighted in our previous reports, and would boost upstream players’ earnings by 20- 30%. Having said that, we only expect a short-term lift to share price performance due to CPO price weakness and foreign funds trimming their positions in the plantation sector due to ESG concerns. Maintain MARKET WEIGHT.