Indonesia expects palm oil export levy revenue to rise 31%

Indonesia expects revenue from its palm oil export levy to increase by about 31% in 2026 from a year earlier to 41.22 trln rupiah ($2.33 bln). The increase is being driven by higher crude oil prices and a rise in the export levy on crude palm oil (CPO), Reuters reported, citing the government.

In January-July, palm oil export levy collections reached 27.81 trln rupiah, up 73.3% from the same period in 2025. Indonesia channels the funds through its plantation fund to support the sector, including financing its biodiesel program and replanting smallholder plantations.

In March, Indonesia raised the CPO export levy to 12.5% of the reference price from 10%. The move was aimed at providing additional funds to cover the price gap between conventional diesel and palm oil-based biodiesel.

Higher levy revenue has improved the fund’s financial position. The government estimates that the plantation fund could post a surplus of 18.45 trillion rupiah by the end of 2026, providing additional resources for the biodiesel program and support for palm oil producers.

Replanting smallholder plantations remains another key area of funding. From January to August, the fund allocated 2.42 trln rupiah to replant 40.48 thsd ha of oil palm plantations. The higher export levy therefore supports both the expansion of palm oil use in the energy sector and modernization of the production base in the world’s largest palm oil-producing country.

Tags: export, Indonesia, palm oil, duties