Indonesian Political, Business & Finance News

Effective Today! Purbaya Sets New CPO Export Levy Rate of 12.5%

| Source: CNBC Translated from Indonesian | Trade
Effective Today! Purbaya Sets New CPO Export Levy Rate of 12.5%
Image: CNBC

Jakarta – Finance Minister Purbaya Yudhi Sadewa has established a new tariff for the plantation fund levy on the export of palm oil, crude palm oil, and their derivative products.

This new tariff has been formalised in Ministry of Finance Regulation (PMK) Number 9 of 2026, which revises PMK 69/2025. The regulation takes effect two days from its issuance on 27 February 2026, becoming effective on 2 March 2026.

“To increase the productivity of plantation products and provide added value to downstream products at the farmer and industry levels, an adjustment to the plantation fund levy rate on palm oil, crude palm oil, and derivative product exports is necessary,” according to PMK 9/2026.

Under this latest regulation, the plantation fund levy on Crude Palm Oil (CPO) exports has been set at 12.5% per metric tonne based on the reference price established by the ministry overseeing trade affairs. The previous rate was 10%.

This new tariff also applies to Low Free Fatty Acid Crude Palm Oil, Palm Mesocarp Oil, Red Palm Oil, and Degummed Palm Mesocarp Oil, as well as Crude Palm Kernel Oil, Palm Oil Mill Effluent Oil, Empty Fruit Bunch Oil, and High Acid Palm Oil Residue.

A 12% tariff—increased from the previous 9.5%—now applies to Crude Palm Olein, Crude Palm Stearin, Crude Palm Kernel Olein, Crude Palm Kernel Stearin, Palm Fatty Acid Distillate, Palm Kernel Fatty Acid Distillate, Split Crude Palm Oil-based and Split Crude Palm Kernel Oil-based products, Used Cooking Oil, Soap Stock, and Glycerine Water.

A 10% tariff—up from 7.5%—applies to Refined Bleached and Deodorised Palm Olein (including Super Olein), Refined Bleached and Deodorised Palm Oil (including Inedible variants), Split Refined Bleached and Deodorised Palm Kernel Oil-based products, and Crude Glycerine.

The lowest increase sees a 7.25% tariff—up from 4.75%—for branded Refined Bleached and Deodorised Palm Olein and Super Olein packaged in containers of 25 kg or less, and Biodiesel Fatty Acid Methyl Ester per metric tonne.

Conversely, the levy on fresh fruit bunches remains free of charge, whilst kernel products remain at USD 25 per metric tonne. Palm kernel meal also remains at USD 30 per metric tonne, empty fruit bunches at USD 15 per metric tonne, and kernel shell at USD 5 per metric tonne.

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