Bisnis.com, JAKARTA — Indonesian palm oil producers in Indonesia are caught in between contrasting sentiments that could determine their financial performance and stock prices. On one side, international trade agreements could act as a positive catalyst while on the other, the European Union’s anti-deforestation rules (EUDR) and export taxes both pose challenges to the industry.
Analysts maintain an overall bullish outlook for the medium-term performance of palm oil producers, not least thanks to the tailwind from reduced US tariffs on Indonesian products, down from 32% down to 19%. This gives Indonesian palm oil exporters a competitive edge in the US market, especially compared to Malaysia which currently faces a 25% tariff.
