22/12/05 JAKARTA, (Asia Pulse) - The Indonesian government has decided to cut export tax on crude palm oil (CPO) by half, from 3 per cent to 1.5 per cent, effective in two weeks time.

However, exporters will end up paying more because the government has also decided to raise the CPO export benchmark price to US$420 from US$160 per ton.

Agriculture Minister Anton Apriyantono said the changes are expected to help maintain the stability of the CPO market and boost exports.

Indonesia, the world's second largest producer and supplier of palm oil after Malaysia, produced an estimated 13.6 million tons of CPO this year, a 13 per cent increase from last year.

CPO exports have risen to an estimated 9.6 million tons from 8.6 million tons last year.

(ANTARA)