The Indonesian palm oil industry group has urged the government to reduce the export tax on palm oil to 0%.

Indonesia's palm oil industry and farmers' groups on Wednesday urged the government to cut export costs to offset the impact of a 32 per cent "reciprocal" tariff imposed by the US on Indonesian exports, according to foreign media reports. SPKS, a smallholder palm oil farmers' group, said that "by reducing the export duty and export special project tax to 0 per cent, the fall in prices at the farmer level can be offset to help stabilize the price of palm fruit." Indonesia imposes an export duty of $196 per metric ton on crude palm oil exports and an export special project tax.