Lang
Indonesia is working to make the country more attractive to investors, and these structural reforms may extend to the palm oil sector as the government seeks to encourage higher-value processing.
Finance Minister Purbaya Yudhi Sadewa told a forum in Jakarta that Indonesia may in the future impose some taxes on crude palm oil exports while offering incentives for downstream palm oil products. He invited companies to invest in Indonesia to produce more advanced products based on crude palm oil.
The minister did not provide detailed information about the possible incentives.
Investor interest in Indonesia’s palm oil sector remains strong. The government estimated that the country attracted around Rp18.3 trillion, or about US$1 billion, in investment aimed at helping Indonesia move higher up the palm oil value chain between January and March.
Indonesia has not clarified whether the funds came from domestic or foreign sources. Palm oil is widely used across consumer goods, appearing in a large share of packaged products sold in supermarkets.
The government is relying on a special task force to address obstacles facing investors. Within six months of its creation, the team said it had resolved issues that were holding back investments worth up to US$30 billion.
Government data showed that Indonesia’s exports of crude palm oil and its derivatives reached US$6.11 billion in the first quarter of 2026. Indonesia remains the world’s largest palm oil supplier.
Source: Jakarta Globe
