07/03/212 (Bernama) - Malaysia is looking at constructive ways to assist palm oil downstream players counter Indonesia's new lower tax structure, which has affected 40 per cent of local smallholders.

Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said Indonesia is undergoing an industrialisation phase of its palm oil industry, therefore, lowering the palm oil export duty would benefit the country.

"We will try to accelerate the downstream sector to be much more competitive," he told reporters after delivering the keynote address at the Palm & Lauric Oils Conference 2012 here Tuesday.

Among moves taken by Malaysia in this regard is the government issuing a duty free CPO export quota of three million tonnes for plantation firms with overseas refineries last year.

Dompok said both Malaysia and Indonesia are still in talks to address the issue.