The Indonesian Palm Oil Association (Gapki) has expressed concerns that a proposed increase in the levy on crude palm oil (CPO) exports from 7.5% to 10% could make local producers less competitive internationally. The move is aimed at supporting the government's mandatory 40% palm oil-based biodiesel programme, which starts in January and is expected to reduce the country's reliance on imported diesel and boost demand for domestically produced vegetable oils. However, businesses worry that the higher levy could decrease the overall volume of CPO exports, especially with stagnant domestic production.