Palm Oil Export Levy Hike Rejected by Farmers

Concerns Over B50 Biodiesel Funding

The Indonesian Palm Oil Farmers Association (POPSI) has expressed strong opposition to plans to increase the export levy on crude palm oil (CPO) to fund the upcoming B50 biodiesel program ¹

. According to POPSI, the current export levy of US$75-95 per ton is already a significant burden on farmers, and any further increase would reduce their incomes and make Indonesian palm oil less competitive in the global market ²

Source 2

https://industri.kontan.co.id/news/penerapan-b50-berpotensi-kerek-kenaikan-pungutan-ekspor-sawit

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Impact on Farmers' Incomes

POPSI Chairman Mansuetus Darto stated that every US$50 per ton increase in the export levy would result in a Rp435 per kilogram decrease in the price of fresh fruit bunches (TBS) purchased from farmers ¹

. This would have a devastating impact on farmers' livelihoods, as they are already struggling to make ends meet.

Alternative Funding Options

Instead of increasing the export levy, POPSI is urging the government to explore alternative funding options for the B50 biodiesel program ²

. The association believes that the program's goals can be achieved without placing an undue burden on farmers.