Indonesia raises export duty on crude palm oil from 7.5% to 10%

Indonesia will raise the crude palm oil (CPO) export duty to 10% of the base price from May 17 from the current 7.5% to fund an increase in the biodiesel blending mandate, The Edge Malaysia reported, citing a government decree signed on Wednesday.

Export duties on other palm oil and palmolein products will also be raised to between 4.75% and 9.5% of the CPO base price, up from the current 3% to 6% of the base rate.

The levies are being levied to fund palm oil, biodiesel and tree replanting subsidies for smallholder farmers.

Indonesia, we recall, increased the share of mandatory use of palm oil-based biodiesel from 35% to 40% this year and is exploring the possibility of switching to 50% in 2026, as well as 3% blend for jet fuel next year.

According to data from the Energy Ministry obtained earlier, as of the end of April, Indonesia had consumed 4.44 million kiloliters of biodiesel and allocated 15.6 million kiloliters of biodiesel for distribution in 2025, up from about 13 million kiloliters last year.

Tags: Indonesia, palm oil