Tridge summary
Indonesia plans to increase its export levy for crude palm oil (CPO) from 7.5% to 10% to finance higher biodiesel subsidies. The move is in support of the country's mandatory biodiesel programme, which is increasing the bio-content from 35% to 40% starting January 1. This is expected to boost the subsidy requirement, leading to the need for additional funding. However, the higher levy may impact the competitiveness of Indonesian exports.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
Indonesia will increase its export levy for crude palm oil (CPO) to 10 per cent from the current 7.5 per cent to finance higher biodiesel subsidies, its chief economic minister said on Thursday. The levy will be implemented once the relevant finance ministry regulation has been issued, Airlangga Hartarto said. Indonesia, the world’s top palm oil producer, collects levies to help subsidise its mandatory biodiesel programme, in which bio-content will be increased to 40 per cent, called B40, starting Jan. 1 from the current 35 per cent. The higher blend is expected to increase the subsidy requirement. BPDPKS, the agency in charge of collecting and managing the palm oil funds, estimated in November that increasing the mandatory blend of biodiesel to 40 per cent would increase the subsidy requirement by 68 per cent. “There will be funding from BPDPKS … First, we will increase the levy to 10 per cent,” Airlangga said when asked about the subsidy financing. Palm oil currently costs ...
Source: UkrAgroConsult
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