Indonesia plans to raise its palm oil export levy to a range of 4.5% to 10% of the crude palm oil reference price, up from the current 3% to 7.5%, according to an official from the Plantation Fund Agency. The adjustment aims to support the country’s expanded biodiesel program.
This year, Indonesia increased the mandatory palm oil content in biodiesel from 35% to 40% and is evaluating a potential rise to 50% in 2026. Additionally, a 3% palm oil blend for jet fuel is under consideration for next year as part of efforts to reduce fuel imports.
Kabul Wijayanto, director at the Plantation Fund Agency, stated that the new levy rates would take effect three days after the regulation is issued. The regulation is currently under review by the law ministry. The agency is expected to allocate approximately 35.47 trillion rupiah ($2.15 billion) in subsidies for biodiesel in 2025.
The government had initially signaled an increase in the crude palm oil levy to 10% late last year, though it has yet to be implemented. More refined palm oil products will continue to be subject to lower levy rates.
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