BPDPKS Becomes BPDP Under PMK 6/2025, Now Managing Palm Oil, Cocoa and Coconut Funds

Jakarta — The Palm Oil Plantation Fund Management Agency (BPDPKS) has officially been renamed the Plantation Fund Management Agency (BPDP) after Finance Minister Sri Mulyani Indrawati issued Finance Ministerial Regulation (PMK) No. 6 of 2025 on BPDP's organisation and work procedures, promulgated and effective from 17 January 2025. The agency, which manages palm oil export levies and funds biodiesel incentives, now also handles funds for cocoa and coconut.

The change follows Presidential Regulation No. 132 of 2024 on plantation fund management. According to Hukumonline, the regulation, promulgated on 18 October 2024, revoked Presidential Regulation No. 61 of 2015, which for nearly a decade had been the legal basis for collecting and using palm oil plantation funds.

From one commodity to three

Bloomberg Technoz reported that PMK 6/2025 widens the agency's remit from palm oil alone to palm oil, cocoa and coconut. Its functions cover planning and budgeting, fund collection, management and disbursement, as well as administration, accountability and oversight. Upstream, BPDP disburses funds for replanting and for plantation facilities and infrastructure across the three commodities; it also channels funds to downstream sectors.

Under Presidential Regulation 132/2024, as summarised by Hukumonline, BPDP sits under the Ministry of Finance. Its funding comes from, among other sources, levies on plantation businesses exporting plantation commodities or their derivatives, on industries using plantation raw materials, and on exporters. The same regulation required BPDPKS to keep performing its duties until BPDP was established, for no more than three months from 18 October 2024.

Replanting disbursements briefly suspended

The transition briefly affected services. CNBC Indonesia reported that on 14 January 2025 BPDPKS issued letter No. S-246/DPKS.3/2025 temporarily halting disbursements and refunds of palm oil replanting (PPKS) funds and disbursements of facilities and infrastructure (SPPKS) funds. The reason was a change in nomenclature in the agency's organisational structure (SOTK), effective 18 January 2025.

BPDPKS Director of Fund Collection Normansyah Hidayat Syahruddin, quoted by CNBC Indonesia, stressed that this was a postponement while the new structure was put in place, not a halt in services. He said the 2025 budget was already available, so nothing would be cancelled or cut, and documents submitted through the SMART-PSR application by 15 January 2025 would be processed once the restructuring was complete.

What it means for the biodiesel programme

The institutional change comes just as biodiesel funding needs are growing. The B40 mandate, in force since 1 January 2025, is governed by ESDM Ministerial Decree No. 341.K/EK.01/MEM.E/2024 within the BPDPKS financing framework, with 7.55 million kL allocated to the public service obligation (PSO) segment and 8.07 million kL to non-PSO users, according to the Ministry of Energy and Mineral Resources (ESDM).

With a mandate that now includes cocoa and coconut, funds raised from export levies will finance a wider range of programmes. Key points for businesses:

• Name and status: BPDPKS becomes BPDP, still under the Ministry of Finance.
• Commodities covered: palm oil, cocoa and coconut.
• Legal basis: Presidential Regulation 132/2024 (revoking Presidential Regulation 61/2015) and PMK 6/2025 on organisation and work procedures.
• Replanting services: replanting and infrastructure fund disbursements were briefly postponed during the restructuring.

The regulations underpinning the biodiesel programme, including its financing framework, are listed on the biodiesel regulations page.