Jakarta. The government is considering revising the current 7.5 percent export levy on crude palm oil (CPO) to boost the competitiveness of Indonesian palm oil products amid growing global competition with other vegetable oils.

Dida Gardera, Deputy for Food and Agribusiness at the Coordinating Ministry for Economic Affairs, said that CPO export tariffs require regular evaluations to adjust with market conditions.

"We will conduct evaluations regularly, every three or six months. Changes are not out of the question," Dida said during a palm oil seminar in Jakarta on Monday.

The review aims to achieve two key objectives: ensuring that rising fresh fruit bunch (FFB) prices benefit farmers' welfare and maintaining the global competitiveness of Indonesian CPO prices.

In addition to competitiveness, the evaluation will consider domestic CPO needs and the financial health of the Palm Oil Plantation Fund Management Agency (BPDPKS). Dida said that any adjustments to the export levy policy will depend on the results of these reviews, with potential changes expected next year.

The export levy helps fund critical programs, including palm oil rejuvenation and biodiesel initiatives. The current 7.5 percent levy was introduced under Finance Minister Regulation No. 62 of 2024, which reduced the previous rate of nearly 11%. The policy has been in effect since Sept. 22, 2024.

The government remains committed to balancing domestic and international interests, aiming to strengthen the sustainability of Indonesia's palm oil industry while addressing farmers' welfare and market demands.