JAKARTA – The Indonesian government is raising the export levy on crude palm oil (CPO) products to 10%, effective from 17 May 2025.

Previously, the country imposed a 7.5% levy on exported CPO products.

The change is in accordance with Finance Minister Regulation (PMK) Number 30 of 2025, signed by Finance Minister Sri Mulyani on 5 May 2025 and promulgated on 14 May 2025.

The regulation also stipulates levies ranging from 4.75% to 9.5% on exported processed CPO products. Previously, the levy on processed palm oil exports ranged from 3% to 6%.

Sri Mulyani stated that the increased levy aims to enhance the value-added of plantation products, particularly for the national biodiesel programme.

The funds collected will be managed by the Palm Oil Plantation Fund Management Agency (BPDP), which supports the Smallholder Palm Oil Replanting Programme (PSR) and broader improvements in the palm oil sector.

According to data from the Ministry of Energy and Mineral Resources (ESDM), Indonesia had consumed 4.44 million kilolitres of biodiesel as of 24 April 2025.

By the end of the year, Indonesia also aims to increase biodiesel production by 20% to 15.6 million kilolitres, up from 13 million kilolitres in 2024. (KR/ZH)