Indonesia wants to increase export duty on palm by 1.5 times

Indonesia, the world's largest producer of crude palm oil (CPO), is set to increase its export duty from 3-7.5 percent to 4.5-10 percent of the base price. This decision is to finance the mandatory increase in the amount of palm oil in alternative biodiesel fuel. The new tariffs will be applied three days after the decree, which is still under consideration. The country also plans to increase the palm oil content in its biodiesel fuel from 40% to 50% next year. However, Russia, a major importer of Indonesian palm oil, has reduced its imports to an all-time low of 795 thousand tons in 2024, marking the third year of consecutive reduction in purchases.

Indonesia, the world's largest producer of crude palm oil (CPO), plans to raise the export duty on the product from the current 3-7.5 percent to 4.5-10 percent of the base price, Reuters reports. This measure will help finance the mandatory increase in the amount of palm oil in alternative biodiesel fuel, where it is used as one of the components. As specified by the Director of the Palm Oil Fund Management Agency Kabul Widjayanto, the country's authorities plan to apply the new tariffs three days after the publication of the decree, which is still under consideration. The increase in the tax on CPO from 7.5% to 10% was announced by the country's government at the end of last year. At the same time, more refined palm oil products are subject to lower rates of collection. Reuters recalls that Indonesia recently increased the mandatory content of palm oil in its biodiesel fuel from 35 to 40 percent. Next year, the country's authorities intend to increase this figure to 50 percent, ...