Indonesia Keeps $124/tonne Export Tax on CPO for October

30-Sep-2025 06:08 PM

Jakarta. Although the reference price for crude palm oil (CPO) in Malaysia has been increased by $8.90 per tonne for October compared to September, the export tax on it has remained unchanged.

According to official data, the reference price for CPO for September was $954.71 per tonne, while for October 2025 it has been fixed at $963.61 per tonne.

Consequently, the export tax on CPO in Indonesia will remain the same at $124 per tonne in October, as in September. Additionally, an additional 10 percent levy will apply.

According to experts, the increase in the reference price is expected to generate higher revenue for Indonesia from palm oil exports.

This will support government efforts to increase the supply and availability of indigenous biodiesel in the domestic market.

It is known that Indonesia is the world's largest producer and exporter of palm oil and India is its largest buyer. Indonesia ranks first in supplying edible oil to India.

If the export offer price increases due to the high reference price there, Malaysia, which is Indonesia's strongest competitor in the global palm oil market, will benefit from it. Malaysia will also impose an 8 percent export duty on palm oil for October.

The Indonesian government has implemented a mandatory rule of using 40 percent palm oil in the production of biodiesel, due to which domestic consumption of palm oil is increasing rapidly there.