JAKARTA – Trade Minister Zulkifli Hasan (Zulhas) will meet Malaysia’s Industry and Plantation Commodities Minister early next month to discuss the problems of palm oil exports to Europe.
“I’ll come there. Previously, we’ve been scheduled to meet. But we missed the scheduled time. At that time I have to meet President,” Minister Zulhas said on Monday, 30 January 2023, during the meeting and chairmanship handover ceremony of ASEAN BAC from Cambodia to Indonesia in Central Jakarta.
Zulhas could not yet confirm whether the meeting will be convened in Indonesia or Malaysia. But he said that he will make a visit to Malaysia early next month (March 2023). “It’s been scheduled that we’ll meet early next month. I will visit Malaysia or they will visit Indonesia. So, whoever can make it first, us or them,” he said.
Previously, Malaysia’s ministry of plantation commodities proposed reduction of palm oil export tax to expand market and to fill the supply shortage of vegetable oils at the global market.
Malaysia’s Industry and Plantation Commodities Minister Zuraida Kamaruddin said during an interview with Reuters recently that tax reduction had been proposed to the finance ministry, which has set up a committee to assess the proposal.
The palm oil export tax is proposed to be cut from the current 8% to between 4 – 6 percent. A decision on the tax reduction is expected to be taken by June this year.
“During this current crisis, perhaps we can relax a bit, so that more palm oil can be exported,” Zuraida said.
Malaysia has now planned to increase its vegetable oil’s market share, following the invasion of Russia to Ukraine, which has disturbed the supply chain of sunflower oil, and the policy of Indonesia to squeeze the exports of palm oil.
The finance ministry of Malaysia has been asked to accelerate the tax reduction for FGV Holdings (FGVH.KL), the largest producer of palm oil in Malaysia and producer of oleo-chemical abroad.
Malaysia will also slow down the implementation of B30 mandatory program, which requires blending of diesel fuel with 30 percent of palm oil-based biodiesel (B30), to prioritize the supply to domestic and global industries of foods. (*)
Source: kumparan.com
