Palm Oil Export Levy Increase Warning Due to B50 Mandate

Impact on National Industry Ecosystem

The Indonesian Palm Oil Farmers Association (POPSI) has expressed concerns over the potential increase in palm oil export levies in 2026, following the mandatory implementation of B50 biodiesel. According to POPSI, the increased cost of producing B50 biodiesel will lead to higher export prices, making Indonesian palm oil less competitive in the global market. This could have a negative impact on the national industry ecosystem, particularly for small-scale farmers.

B50 Biodiesel Mandate and Its Implications

The B50 biodiesel mandate, which is set to be implemented in 2026, aims to increase the use of biodiesel in the country's energy mix. However, the increased cost of producing B50 biodiesel could lead to higher export prices, making Indonesian palm oil less competitive in the global market. This could result in a decline in demand for Indonesian palm oil, ultimately affecting the livelihoods of small-scale farmers.