Changing Indonesian Supply Scenario and Its Impacts on Malaysian Palm Products Competitiveness in China
by Lim Teck Chaii
Indonesia introduced a new tax structure for its palm oil exports in October 2011.This study is to explain the situation of the global palm oil market before and after the tax was introduced. This tax adjustment encourages Indonesian producers to increase its production of refined palm oil and resulted in a drop in CPO export.

As Indonesia becomes more aggressive in selling refined palm oil, Malaysia palm oil industry faces tougher competition. Since 2000’s, Malaysia’s palm oil share in China market has drop to 55% - 61% from 70+ percent.

MPOC has initiated plan to recover the 70+ percentage of China’s palm oil market share Malaysia enjoys in early 2000’s. These strategies can be grouped as building new market segments, intensifying MPOC’s market-driven service efforts and improve the competitive position of Malaysian Palm Oil in China
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