Sign up | Log in



Home  >>   Daily News  >>   Indonesia  News  >>   Trade  >>   Indonesia: China must cut palm oil duties
NEWS UPDATES Asean Affairs        29  April 2011

Indonesia: China must cut palm oil duties

Related Stories

April 27, 2011
Indonesia Shouldn’t Renegotiate China FTA

April 26, 2011
New Indonesian customs head to “clean up”

April 14, 2011
Indonesia must clarify China FTA problems

April 11, 2011
Stung by Asean-China deal, Indonesia wants FTA delay

April 2, 2011
Indonesian Shipments to Japan Plunge

March 21, 2011
Indo exports to Japan should drop, but rebound

March 12, 2011
Indonesia says Doha talks stalled

March 9, 2011
Australia, Indonesia discuss free trade

China must cut its import duties for palm oil to help boost Indonesian exports that are little changed at 2 million tons this year, an industry association said on Thursday.

China is the world’s top palm oil importer, and analysts say consumption in the world’s second-largest economy will rise about 10 percent this year to 7.3 million tonnes.

“Unfortunately, they treat our CPO [crude palm oil] with import tax,” Joko Supriyono, secretary general of the Indonesian Palm Oil Association (Gapki), said ahead of Chinese Prime Minister Wen Jiabao’s visit to Indonesia this week.

Chinese import duties for edible vegetable oils are currently 9 percent, and 2 percent for industrial palm oil use. Industrial palm oil imports, for cosmetics and soap, are small.

“The percentage of import tax for CPO is bigger than the import tax for the derivative product,” Joko said. “They want to protect their domestic industry and domestic refineries.”

Wen is visiting Malaysia and Indonesia this week to seal a series of agreements covering everything from banking and energy to palm oil and infrastructure.

“The Indonesian concern is that there are so many products that cannot compete with China,” Joko said.

In early March, benchmark crude palm oil prices rose to a one-week high on speculation about potential Chinese import duty cuts. Global output for palm oil was about 45 million tons last year, with China importing 5.696 million tons.

China is expected to buy around 2 million tons of palm oil from Indonesia this year, little changed from 2010, Joko said.

“China is now looking for a local partner to develop the downstream industry in Indonesia,” he said. “[If] Indonesia has a partner from China, then exporters can bring this product to China... rather than directly export with a higher import duty.”

Indonesia, the world’s top producer of palm oil, is expected to produce 21 million to 23 million tons of palm oil this year, having overtaken Malaysia as the top palm oil producer in 2007. China is also a big buyer of Malaysian palm oil, although its imports of the vegetable oil last year fell 12.5 percent to 3.4 million tons.

Indonesia’s government is trying to spur domestic industries to create higher-value exports from a country that is a leading producer of raw materials such as CPO, tin and thermal coal.

Its palm oil export tax, currently 22.5 percent, has been criticized by the industry, which is lobbying for changes. The tax aims to ensure domestic requirements are met and to reduce volatility in local cooking oil prices.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    29  April 2011 Subsribe Now !
 • Cambodian rubber exports rise Subcribe: Asean Affairs Global Magazine
• Indonesia: China must cut palm oil duties Asean Affairs Premium
• Indonesia’s Yudhoyono asks for help with radicals
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• World Bank: Malaysia needs more reforms     
• Aluminum smelter plant for Malaysia

• Philippines looks for credit rating upgrades

• Silver futures offered in Thailand

• Thai call success rate needs improvement p

Asean Analysis    29  April 2011

Advertise Your Brand
• Guangxi to become Asean gateway Sponsor Our Events

Asean Stock Watch    28  April 2011

• Asean Markets to Extend Rally p

Global News Impacting Asia    17 November 2010


• Bank of America sees Asian inflation


• Lloyd’s increases insurance push in Malaysia


• Wells Fargo analyst on euro


• Obama’s visit to Asia


ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand