JAKARTA, Jan 27 Asia Pulse - Indonesian producers of crude palm oil (CPO)said they are set to reject plans by the government to raise the exporttax on that commodity from 3 per cent at present.

The association of cooking oil industry (Aimmi) said a drafted regulationhas been submitted calling for an increase in the export tax on CPO to ashigh as 60 per cent.

Aimmi chairman Adi Wisoko said CPO producers will hold a meeting with theagriculture ministry to discuss the draft regulation and its implications.

Adi said an increase in the export tax will weaken the competitiveness ofthe country's CPO in international market and the country will lose marketfoothold abroad established with difficulty over the past years.

The association of palm oil companies (Gapki) has warned that it will bedifficult to regain lost foothold in international market.

In the past the government raised export tax on CPO when supply fell shortof domestic requirements.