Indonesian Palm Oil Association concerned about impacts of B40 implementation

In Indonesia, Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said the combination of regulation on foreign exchange from exports (DHE) of natural resources scheduled to take effect since January 2026 and the implementation of biodiesel 40 percent (B40) program have the potential to pressure the sustainability of Indonesian palm oil industries if they are not supported with policy flexibility.

Eddy stated that the DHE policy could have a direct impact on companies’ cash flow, which will then affect production, exports, and the competitiveness of the Indonesian palm oil industries. The requirement to withhold up to 50 percent of the export proceeds (DHE) could negatively affect the ability of companies to meet their daily costs of operations.