Lang
Indonesia will raise its palm oil export levies to a range of 4.5% to 10% of the crude palm oil reference price, up from the previous 3% to 7.5%, to fund a planned increase in the amount of palm oil used in biodiesel, a palm oil fund official said on Tuesday.
Indonesia raised the mandatory palm oil content in its biodiesel blend to 40% this year from 35%. It is considering raising this to 50% in 2026, alongside a 3% blend for sustainable aviation fuel next year, as part of efforts to curb fuel imports.
Kabul Wijayanto, a director at the Plantation Fund agency, which is responsible for collecting and distributing export levies, said authorities would implement the new rates three days after the regulation is issued. Wijayanto added that the regulation is currently being processed by the Ministry of Law. The agency is expected to disburse 35.47 trillion rupiah ($2.15 billion) in biodiesel subsidies this year. The government had signalled late last year that it would raise the crude palm oil levy to 10% from 7.5%, but this has not yet been implemented. Lower levies are imposed on more refined palm oil products.
Source: Reuters