Indonesia palm oil export levies projected to reach Rp41.22 trillion by 2026

The Indonesian Palm Oil Fund Management Agency (BPDPKS) projects that palm oil export levies will reach Rp41.22 trillion by the end of 2026, representing a 30.84% increase from the previous year. As of July 2026, collected funds totaled Rp27.81 trillion, a 73.3% increase compared to the same period last year.

These funds are intended to support strategic programs ranging from upstream to downstream, including the development of eco-friendly fuels and improving smallholder farmer welfare. The demand for Crude Palm Oil (CPO) for the B50 biodiesel program is expected to rise from 15.6 million tons to 18 million tons. The implementation of B50, alongside rising crude oil prices, is projected to result in state budget efficiencies of approximately Rp19.5 trillion.

In terms of land rehabilitation, the Palm Oil Replanting Program (PSR) covered 40,484 hectares between January and August 2026, valued at Rp2.42 trillion. Since 2017, the program has rehabilitated 427,441 hectares using Rp12.14 trillion and has supported 1 million jobs. Additionally, the government aims to quadruple palm oil scholarships, increasing recipients from 5,000 to 20,000 students to strengthen industry human resources.