Indonesia Rethinks Palm Oil Levy

Indonesia is rethinking its palm oil export levies. Right now, the country's reviewing its strategy to stay competitive in the global edible oil market.

Currently, export levies range from 3% to 7.5%. This simplified system, in place since September 2024, was designed to boost exports and aid small farmers.

The review is mainly about staying ahead against oils like soybean and sunflower. The goal is to make sure Indonesian exports remain attractive while helping farmers.

Levies are also being adjusted for certain by-products like palm oil mill effluent and used cooking oil. These will be taxed similarly to crude palm oil to encourage the industry's sustainability and support biodiesel programs.

Although exact changes aren't specified yet, the aim is clear: enhance palm oil's global standing and support both farmers and exporters amid shifting market demands.