Indonesia expects palm oil export levy collection to jump about 31pc

JAKARTA: Indonesia expects palm oil export levy collection to jump about 31% this year compared with 2025, a government statement said on Friday, amid rising crude oil prices and a hike in the palm oil export tariff.

Here are some details from the coordinating ministry of economic affairs: Palm oil export levy collections expected to reach 41.22 trillion rupiah ($2.33 billion) in 2026.

In the first seven months, palm export levy collections touched 27.81 trillion rupiah, 73.3% higher compared to the same period last year.

Indonesia collects export levies on its palm oil and cocoa bean exports through plantation fund agency to fund its programmes in the sector, including a biodiesel mandate and smallholders replanting.

Indonesia raised its crude palm oil export levy to 12.5% of the CPO reference price from 10% in March after the fund balance was seen as tight to plug the price gap between fuels made from crude oil and palm oil. The plantation fund is now estimated to have an 18.45 trillion rupiah surplus by the end of 2026.

The fund has distributed 2.42 trillion rupiah to replant 40,484 hectares of smallholder palm oil plantations from January to August this year, the ministry said.