Indonesia's Palm Oil Levy Collection Set for 31% Jump Amid Rising Crude Prices

Indonesia's palm oil export levy collection is expected to jump about 31% this year compared to 2025, according to a government statement. The country aims to collect 41.22 trillion rupiah ($2.33 billion) in 2026 from the palm oil and cocoa bean exports through the plantation fund agency. This increase comes as a result of rising crude oil prices and a hike in the palm oil export tariff.

The government raised the 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. This move is expected to generate a surplus of 18.45 trillion rupiah for the plantation fund by the end of 2026.

In the first seven months, palm export levy collections touched 27.81 trillion rupiah, a 73.3% increase compared to the same period last year. The agency has distributed 2.42 trillion rupiah to replant 40,484 hectares of smallholder palm oil plantations from January to August this year.