23/01/2012 (Business Recorder) - Indonesia, the world's top palm oil producer, will increase its export tax on the edible oil to 16.5 percent for February from 15 percent the previous month, a trade ministry official said on Friday.

A tax on cocoa beans will remain at 5 percent for February unchanged from the previous month, he said.

The government has also set the export tax for RBD palm olein at 8 percent for February, an increase from January's export tax which was capped at 7 percent, said Deddy Saleh, the director general of foreign trade at the trade ministry.

Southeast Asia's largest economy has a palm export tax system that aims to boost downstream industries, secure domestic supplies and reduce volatility in cooking oil prices.

In August 2011, the country announced new palm oil export tax rules which included setting the minimum for the CPO export tax at 7.5 percent versus 1.5 pct previously.

Indonesian palm oil refiners and other downstream firms were said by analysts to be biggest winners from the tax changes, which cut the ceiling for palm oil products (olein) to 13 percent from 25 percent previously.

Top vegetable oil buyer India and refiners in the world's number two producer, Malaysia, have both asked for Indonesia to review its new tax policy.

The tax rate for the following month is calculated based on CIF Rotterdam prices, Malaysian benchmark and Jakarta future prices.