Palm Oil Industry Protests Proposed Surface Water Tax of Rp 1,700 Per Tree

Jakarta – The Indonesian Palm Oil Association (Gabungan Pengusaha Kelapa Sawit Indonesia, GAPKI) has expressed opposition to a planned surface water tax (Pajak Air Permukaan) of Rp 1,700 per palm tree.

GAPKI General Chairman Eddy Martono believes the proposed policy has the potential to increase the burden on the palm oil plantation industry. “According to reports, palm oil is now going to be taxed again with a Surface Water Tax (PAP) of Rp 1,700 per tree. I believe this will be an additional burden,” Eddy said during a press conference in Karet, Jakarta, on Thursday (12 March 2026).

He argues that various levies imposed on the palm oil sector need to be streamlined to avoid placing further pressure on businesses. “And this (PAP) – which in principle shouldn’t exist – should not be imposed,” Eddy stated.

GAPKI Secretary General Hadi Sugeng Wahyudiono said the industry will continue to campaign for cancellation of the proposed tax. According to him, the palm oil industry is already subject to various tax obligations related to water usage.

“So in principle, if it doesn’t make sense, we should reject it. We therefore object to this,” Eddy said. The regulation covers rules related to surface water, groundwater, and rainwater usage. “These various levies are strange. Certainly this will increase our costs. I believe we will face problems,” Eddy added.