Tuesday, March 18, 2025

Officials say that Indonesia will increase the palm oil export tax from 4.5% to 10%.

March 18, 2025

A plantation fund official announced on Tuesday that Indonesia would increase its palm oil export tax to between 4.5% to 10% of the crude oil reference price. This is an increase from the previous 3% to 7.5%. The new tax will be used to finance the mandated rise in the amount of oil used to make biodiesel.

Indonesia increased the amount of palm oils in its biodiesel blend to 40% from 35% this year. It plans to increase it to 50% by 2026 and to a 3% mix for jet fuel in order to reduce fuel imports.

Kabul Wijayanto said that the Plantation Fund Agency is responsible for collecting and distributing export levies. He added that the authorities will implement the new rates within three days of the publication of the regulation.

Wijayanto stated that the law ministry is currently processing the regulation. The agency is expected to distribute 2,15 billion rupiah (35,47 trillion rupiah) as biodiesel subsidies this year.

The government announced the increase of crude palm oil levies to 10%, from 7.5% late last year. However, it has not yet been implemented. The levy rate is lower for refined palm oil.

(source: Reuters)

Related News

Marine Technology ENews subscription

World Energy News is the global authority on the international energy industry, delivered to your Email two times per week.

Subscribe to World Energy News Alerts.