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CNA
08-07-2025
- Business
- CNA
Indonesia palm oil exports to US may fall due to tariffs, industry group says
JAKARTA :Indonesian palm oil exports to the United States may fall due to the 32 per cent tariffs threatened on Indonesian goods, allowing competitors in Malaysia to gain market share, an industry official told Reuters on Tuesday. The two countries are the world's biggest palm oil producers, but Indonesia has been by far the biggest supplier to the United States, accounting for 85 per cent of its total imports last year. But if the new tariff comes into effect, it could lead to a 15 per cent-20 per cent drop in Indonesian palm oil shipments to the United States, said Hadi Sugeng, secretary general of the Indonesia Palm Oil Association. "The competitiveness of palm oil will decline against other vegetable oils such as soybean oil and rapeseed oil, especially if countries exporting these vegetable oils receive lower tariffs," he added. Overall, Indonesia exported 29.5 million tons of palm oil products in 2024. Exports to the United States stood at an average of 2.25 million metric tons per year over the past three years, Hadi said. Indonesia's top negotiator is headed to Washington on Tuesday to meet with trade representatives of the United States, an economic ministry official said. Malaysian palm oil faces a lower tariff of 25 per cent, giving producers an advantage over their Indonesian counterparts. Speaking on Tuesday, Malaysia's plantations and commodities minister Johari Abdul Ghani said U.S. importers would have to bear the cost of additional tariffs on palm oil. He said there was was no alternative to palm oil in the U.S. as soybeans cannot be converted into oleochemicals, plant-based products used in toothpastes and detergents.
Business Recorder
08-07-2025
- Business
- Business Recorder
Indonesia palm oil group says palm oil exports to US may fall due to tariffs
JAKARTA: Indonesian palm oil exports to the United States may fall due to the 32% tariffs threatened on Indonesian goods, Hadi Sugeng, secretary general of the Indonesia Palm Oil Association (GAPKI), told Reuters on Tuesday. Palm oil products are among Indonesia's top exports to the United States. If implemented, the tariff could lead to a 15%-20% drop in Indonesian palm oil shipments to the United States, which stood at an average of 2.25 million metric tons per year over the past three years, Hadi said. Overall, Indonesia exported 29.5 million tons of palm oil products in 2024. 'The competitiveness of palm oil will decline against other vegetable oils such as soybean oil and rapeseed oil, especially if countries exporting these vegetable oils receive lower tariffs,' he added. Malaysian palm oil futures rise on strong crude oil Indonesian palm oil products, which account for 85% of US palm imports, may also lose market share to Malaysian palm oil, which faces a lower tariff. Indonesia's top negotiator is headed to Washington on Tuesday to meet with trade representatives of the United States, an economic ministry official said.
Business Recorder
18-05-2025
- Business
- Business Recorder
Indonesia palm oil group GAPKI urges govt to delay levy hike
JAKARTA: The Indonesia Palm Oil Association, GAPKI, on Friday urged the government to delay a planned hike in the palm oil export levy warning it could harm competitiveness amid global trade uncertainties due to the US tariffs and geopolitical tension. Indonesia is due to raise its palm oil export levy to between 4.75% and 10% from May 17 to help fund a biodiesel blending mandate as well as a palm oil replanting programme. The levy currently stands at 3% to 7.5%. 'The situation is full of uncertainties and it is a big risk to launch a policy that will impact competitiveness of Indonesia's palm oil exports,' GAPKI said in a letter addressed to Finance Minister Sri Mulyani Indrawati. Indonesia, the world's biggest palm oil producer, is facing proposed US tariffs of 32%, while number two producer Malaysia faces a 24% rate. The tariffs have been put on hold until July. 'It is feared that this will make Indonesian palm oil exports increasingly uncompetitive compared to Malaysia, especially for the US market which is currently dominated by Indonesia,' the group said. Malaysia charges an export duty of between 3% and 10%, depending on the price of palm oil. For May, the duty has been set at 10%. Sri Mulyani Indrawati said previously that Indonesia would adjust its crude palm oil export tax to reduce the burden on exporters from US tariffs. The tax is separate to the levy. Meanwhile, heightened tension between major palm oil buyers India and Pakistan has sparked concern about reduced demand, GAPKI said. 'There is no permanent ceasefire between India and Pakistan yet that had caused buyers from both nations to delay purchase of crude palm oil and its derivatives,' the group added. The finance ministry and coordinating ministry of economics did not immediately respond to a request for comments.
Business Recorder
17-05-2025
- Business
- Business Recorder
Indonesia palm oil group GAPKI urges government to delay levy hike
JAKARTA: The Indonesia Palm Oil Association, GAPKI, on Friday urged the government to delay a planned hike in the palm oil export levy, warning it could harm competitiveness amid global trade uncertainties due to the U.S. tariffs and geopolitical tension. Indonesia is due to raise its palm oil export levy to between 4.75% and 10% from May 17 to help fund a biodiesel blending mandate as well as a palm oil replanting programme. The levy currently stands at 3% to 7.5%. 'The situation is full of uncertainties and it is a big risk to launch a policy that will impact competitiveness of Indonesia's palm oil exports,' GAPKI said in a letter addressed to Finance Minister Sri Mulyani Indrawati. A spokesperson for the palm oil fund that collects the levy said GAPKI's request will be discussed at a meeting with government ministries next week. The finance ministry and coordinating ministry of economic affairs did not respond to a request for comment. Indonesia, the world's biggest palm oil producer, is facing proposed U.S. tariffs of 32%, while number two producer Malaysia faces a 24% rate. The tariffs have been put on hold until July. 'It is feared that this will make Indonesian palm oil exports increasingly uncompetitive compared to Malaysia, especially for the U.S. market which is currently dominated by Indonesia,' the group said. Palm ends with third straight weekly loss Malaysia charges an export duty of between 3% and 10%, depending on the price of palm oil. For May, the duty has been set at 10%. Sri Mulyani Indrawati said previously that Indonesia would adjust its crude palm oil export tax to reduce the burden on exporters from U.S. tariffs. The tax is separate to the levy. Meanwhile, heightened tension between major palm oil buyers India and Pakistan has sparked concern about reduced demand, GAPKI said. 'There is no permanent ceasefire between India and Pakistan yet that had caused buyers from both nations to delay purchase of crude palm oil and its derivatives,' the group added.
New Straits Times
16-05-2025
- Business
- New Straits Times
Indonesia palm oil group urges government to delay levy hike
JAKARTA: The Indonesia Palm Oil Association, GAPKI, on Friday urged the government to delay a planned hike in the palm oil export levy, warning it could harm competitiveness amid global trade uncertainties due to the US tariffs and geopolitical tension. Indonesia is due to raise its palm oil export levy to between 4.75 per cent and 10 per cent from May 17 to help fund a biodiesel blending mandate as well as a palm oil replanting programme. The levy currently stands at three per cent to 7.5 per cent. "The situation is full of uncertainties and it is a big risk to launch a policy that will impact competitiveness of Indonesia's palm oil exports," GAPKI said in a letter addressed to Finance Minister Sri Mulyani Indrawati. Indonesia, the world's biggest palm oil producer, is facing proposed US tariffs of 32 per cent, while number two producer Malaysia faces a 24 per cent rate. The tariffs have been put on hold until July. "It is feared that this will make Indonesian palm oil exports increasingly uncompetitive compared to Malaysia, especially for the US market which is currently dominated by Indonesia," the group said. Malaysia charges an export duty of between three per cent and 10 per cent, depending on the price of palm oil. For May, the duty has been set at 10 per cent. Sri Mulyani Indrawati said previously that Indonesia would adjust its crude palm oil export tax to reduce the burden on exporters from US tariffs. The tax is separate to the levy. Meanwhile, heightened tension between major palm oil buyers India and Pakistan has sparked concern about reduced demand, GAPKI said. "There is no permanent ceasefire between India and Pakistan yet that had caused buyers from both nations to delay purchase of crude palm oil and its derivatives," the group added. The finance ministry and coordinating ministry of economics did not immediately respond to a request for comments.
