JAKARTA, Jan. 14 (Xinhua) -- Indonesian Trade Minister Gita Wirtjawan on Monday said that Indonesia will not aggressively slash its crude palm oil (CPO) export tax as an effort to boost competition with Malaysia which plans to cut its export tax for CPO to zero this month.

Minister Wirjawan said that Indonesia, the world's largest palm oil producer, did not need to aggressively respond on the Malaysia 's plan as the number of raw palm oil exported by the country to overseas was small.

"So we fell that we do not need to take a stand as aggressive as Malaysia," said Wirtjawan at the State Palace.

The minister hinted that Malaysia may take benefit if Indonesia reduce its CPO export tax.

"Malaysia has an interest to process raw palm oil from Indonesia, but the raw palm oil exported by Malaysia to overseas is not much," said Wirjawan.

Indonesia trimmed export tax for CPO to 7.5 percent in January from 9 percent in December, according to trade ministry.

January 14, 2013

Source: Xinhua News

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