Indonesia raises CPO export levy to 10%, effective May 17
14/05/2025 (Reuters), Jakarta - Indonesia will raise its crude palm oil (CPO) export levy starting May 17 to 10% of its CPO reference price from 7.5% currently, in order to finance the country's increased biodiesel blending mandate, a regulation signed on Wednesday showed.
Export levies for refined products will be set at a range between 4.75% and 9.5% of the CPO reference price, up from between 3% and 6% of the reference rates currently.
The levies are collected to help finance palm oil programmes such as the country's biodiesel programme and a replanting subsidy for smallholders.
Indonesia raised its palm oil-based biodiesel mandatory mix to 40% this year from 35%, and is studying moving to 50% in 2026, as well as a 3% blend for jet fuel next year, as it seeks to curb fuel imports.
The country's plantation fund agency that is in charge of collecting and distributing the palm levy is expected to distribute 35.47 trillion rupiah (US$2.14 billion or RM9.2 billion) for the biodiesel subsidy this year.
Indonesia consumed 4.44 million kilolitres of biodiesel this year up to April 24, an energy ministry official said earlier this month.
The world's biggest palm oil consumer Indonesia has allocated 15.6 million kilolitres of biodiesel for distribution in 2025, up from around 13 million kilolitres last year.