Higher levy taking the cream off planters
? 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.