Indonesia reviews export tax on crude palm oil

Indonesia’s relatively stable domestic CPO production and export levels, combined with rising palm oil prices, suggest that the industry remains competitive in the global market. This review, which will be conducted every 3-6 months, could result in changes to the CPO export tax policy. However, a review is necessary to strike a balance between domestic requirements such as supporting local palm oil producers and maintaining the financial health of the Palm Plantation Fund Management Agency (BPDPKS). This review comes after the Indonesian government implemented a new tariff policy on 11 September 2024, which sets the export tax on CPO at 7.5%, based on a reference price determined by the Ministry of Trade. The new policy, detailed in Finance Ministerial Regulation No. 62/2024, will take effect on 21 September 2024. The policy sets the export tax on palm kernels and palm kernel cake at US$25 per tonne, while taxes on palm oil derivatives are set at 3%, 4.5% or 6%, based on ...