In Indonesia, Reuters reported that Indonesia will likely increase its palm oil export levy to support the country’s biodiesel mandate, according to the country’s energy ministry official Eniya Listiani Dewi.
Indonesia, the largest palm oil producer, has implemented a mandatory 40% palm-based biodiesel blend, known as B40, the highest blending rate in the world. It seeks to increase the blend to 50% later this year, according to the report.
Indonesia subsidizes its biodiesel program using proceeds from palm oil export levies, which are currently set at 10% of its monthly reference price for crude palm oil (CPO), with the levy on more refined products ranging between 4.75% and 9.5%.
“Whether it is B40 or B50, it has to be raised, according to an economic affairs ministry study,” Eniya said, adding that the cash reserves managed by the country’s plantation fund were dwindling.
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Category: Food & Agriculture
