Indonesia's Palm Oil Levy Hike May Support Prices, Biodiesel Push -- Market Talk

Dow Jones
May 15, 2025

0103 GMT - Indonesia's recent hike in crude palm oil export levies may support global CPO prices and strengthen the country's biodiesel mandate, RHB analysts say in a note. They think the policy could improve financial stability for Indonesia's B40 biodiesel program, if oil prices hold above $49/bbl, compared with current $82/bbl, as well as potential for a B50 mandate. Although Indonesian planters may see lower effective average selling prices, higher CPO prices could offset the impact, they reckon. The edge that downstream refiners in Indonesia have would narrow and may enhance Malaysian companies' downstream competitiveness, they say. RHB maintains an overweight rating on Southeast Asia's plantation sector, pegs London Sumatra Indonesia, Bumitama Agri, SD Guthrie, Johor Plantations, and Sarawak Oil Palms as top picks. (yingxian.wong@wsj.com)

 

(END) Dow Jones Newswires

May 14, 2025 21:03 ET (01:03 GMT)

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