Indonesia: Government raises CPO export levy to boost downstream industry

Published 2025년 5월 19일

Tridge summary

The Indonesian Ministry of Finance has increased the export levy on crude palm oil (CPO) from 7.5 percent to 10 percent effective May 17, 2025. The adjustment aims to boost productivity and add value to downstream palm oil products, particularly benefiting smallholder farmers. The levy, which applies to the export of palm oil and its derivatives, is collected through the Public Service Agency for the Palm Oil Plantation Fund Management Board. However, concerns have been raised about the potential impact of frequent levy changes on export competitiveness.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Ministry of Finance has raised the export levy on crude palm oil (CPO) from 7.5 percent to 10 percent, a move the government says is aimed at enhancing productivity and adding value to downstream palm oil products, particularly for smallholder farmers. The new levy, stipulated under Finance Ministry Regulation (PMK) No. 30/2025, was signed on May 5, promulgated on May 14, and comes into effect on May 17, 2025. “The adjustment of the export levy is necessary to enhance the productivity and added value of downstream plantation products, especially for the benefit of farmers,” the regulation states. The levy is imposed through the Public Service Agency for the Palm Oil Plantation Fund Management Board (BLU BPDP) under the Finance Ministry. It applies to the export of palm oil, CPO, and their derivative products, based on a reference price determined by the Ministry of Trade. According to Article 1 of the regulation, the levy is a service fee charged by BLU BPDP to business actors ...

Source: UkrAgroConsult