CPO prices, Malaysian refiners may gain from Indonesia’s palm oil export levy hike — RHB

Crude palm oil (CPO) prices and Malaysian palm oil refiners could see gains following Indonesia’s decision to raise its CPO and refined palm oil export levies, according to RHB Investment Bank. In a recent research note, RHB said the changes — effective May 17, 2025 — could improve global CPO price dynamics and slightly narrow the cost advantage long held by Indonesian downstream refiners. This, in turn, may enhance the competitiveness of Malaysian players. RHB said the cost advantage of Indonesian downstream refiners is expected to narrow slightly, falling from US$84 (RM360) to US$80 per tonne, which could benefit Malaysian refiners. Indonesia will increase its CPO export levy from 7.5% to 10%, while the levy on refined palm oil will rise from 4.5% to 7.5%, and for biodiesel from 3% to 4.75%. The higher levies are aimed at boosting funding for the country’s Biodiesel Fund Agency, which supports its B40 biodiesel mandate and national palm oil replanting efforts. RHB has named ...