Malaysia is looking at constructive ways to assist palm oil downstream players counter Indonesia’s new lower tax structure, which has affected 40 percent of local smallholders.

Plantation industries and Commodities Minister Tan Sri Bernard Dompok said Indonesia is undergoing an industrialization phase of its palm oil industry; therefore, lowering the palm oil export duty would be beneficial to the country.

Among moves taken by Malaysia in this regard is the issuing of 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.