Indonesia Raises CPO Export Levy to 12.5% From 1 March 2026, Biodiesel FAME Levy Hits 7.25%

Jakarta — Finance Minister Purbaya Yudhi Sadewa has raised the export levy on crude palm oil (CPO) from 10% to 12.5% of the reference price through Finance Ministerial Regulation (PMK) No. 9 of 2026. According to DDTCNews and Pajakku, the regulation was promulgated on 27 February 2026 and takes effect on 1 March 2026. Biodiesel in the form of fatty acid methyl ester (FAME) is also affected, with its levy rising from 4.75% to 7.25%.

The levy is a service tariff of the Plantation Fund Management Agency (BPDP), a public service body under the Ministry of Finance. It is calculated from the CPO reference price set monthly by the Ministry of Trade.

Every product group goes up

PMK 9/2026 amends Annex A on levy rates for exports of palm oil, CPO and derivative products. Based on details from DDTCNews and Pajakku, and the previous rates listed by Fortune Indonesia, the changes for the percentage-based groups are:

Group	Example products	Old rate	New rate
II	CPO (including low-FFA CPO), red palm oil, crude palm kernel oil, POME oil	10%	12.5%
III	Crude palm olein, crude palm stearin, PFAD, used cooking oil	9.5%	12%
IV	RBD palm olein, RBD palm oil, RBD palm stearin, crude glycerine	7.5%	10%
V	Branded RBD palm olein in packs of 25 kg or less, biodiesel FAME	4.75%	7.25%

For Group I, which uses specific rates, DDTCNews reported that palm kernel meal is now charged US$30 per tonne and palm kernel shells US$5 per tonne. Under the earlier PMK 30/2025, these stood at US$25 and US$3 per tonne respectively, according to DDTCNews reporting in May 2025. Fresh fruit bunches remain at US$0 and empty fruit bunches at US$15 per tonne.

Sources differ on one point. DDTCNews and Pajakku say PMK 9/2026 amends PMK 69/2025, while Fortune Indonesia writes that it revises PMK 30/2025, which had set the CPO rate at 10%. Fortune also says the regulation was enacted on 27 February 2026 and takes effect two days after promulgation.

Official rationale: productivity and downstreaming

In its considerations, as quoted by DDTCNews, the government said the adjustment aims to raise the productivity of plantation products and add value to downstream products for farmers and industry. Pajakku advised exporters to update their export cost calculations, check HS code classifications against the regulation's annex, and monitor the monthly CPO reference price.

The increase builds on an earlier move. In May 2025, PMK 30/2025 raised the CPO levy from 7.5% to 10% and the biodiesel FAME levy from 3% to 4.75%. With PMK 9/2026, the FAME rate is now more than double the 3% level in force before May 2025.

Link to biodiesel funding

Export levies are the main source of the funds managed by BPDP, including for biodiesel incentives. Ahead of the B40 rollout in late 2024, Coordinating Minister for Economic Affairs Airlangga Hartarto said, as quoted by InfoSAWIT, that incentive funding would come from BPDPKS funds and be prioritised for the public service obligation (PSO) segment.

The mandate itself has not changed since the start of the year. On 13 January 2026, Airlangga said the President's directive for 2026 remained B40, while B50 would continue to be studied depending on the price gap between fuel oil and palm oil, InfoSAWIT reported. The sources above do not specify how much additional revenue the new rates are expected to raise.

Movements in the CPO reference price, which forms the basis for the levy, can be followed on the prices page.