Indonesia’s higher palm oil export levies came into effect on 1 March.
The levies are primarily used to fund biodiesel subsidies and stabilise the domestic palm oil sector.
The crude palm oil (CPO) export levy is now 12.5% compared with 10%, while levies for refined products have increased by 2.5% from its previous 4.74-9.5% rate, according to previous Reuters information.
Meanwhile, on 2 February, President Prabowo Subianto announced the continuation of the country’s ban on palm oil mill effluent (POME) and used cooking oil (UCO) exports.
Palm oil-based residues should be prioritised for domestic use rather than exports and Indonesia aimed to become one of the largest global SAF producers worldwide, Fastmarkets quoted Subianto as saying.
Although restrictions on crude POME and UCO were initially introduced in January 2025 to secure feedstocks for the country’s expanding biodiesel programme and emerging biofuel projects, refined grades of POME and UCO continued to be exported, the 23 February Fastmarkets report said.
Subianto’s latest comments were seen by market participants as confirmation that the crude export ban would stay in place for the foreseeable future as part of a broader energy security and downstream industrialisation strategy, according to sources quoted in the report.
At the time of the report, officials had not clarified if restrictions would extend to refined products.
Indonesia’s long-term aviation strategy included an SAF blending mandate of around 1% for international flights from 2027, with higher blend targets expected later in the decade as new production capacity came online.
Singapore-based traders told Fastmarkets that the market largely expected the restrictions to remain unchanged rather than be widened, with one trader adding that the sector had adjusted to the absence of crude Indonesian supply.
Indonesia’s stance on POME and UCO exports is expected to remain a central driver of Southeast Asian biofuel feedstock balances and pricing in the near future, according to sources.
