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Indonesia Plans Cocoa Export Levy to Fund Sector Upgrades

Arnoldus Kristianus
July 23, 2025 | 7:56 pm
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Eddy Abdurrachman, President Director of the Plantation Fund Management Agency (BPDPKS), at the Coordinating Ministry for Economic Affairs in Jakarta, Wednesday, July 23, 2025. (Investor Daily/Arnoldus Kristianus)
Eddy Abdurrachman, President Director of the Plantation Fund Management Agency (BPDPKS), at the Coordinating Ministry for Economic Affairs in Jakarta, Wednesday, July 23, 2025. (Investor Daily/Arnoldus Kristianus)

Jakarta. The Indonesian government plans to introduce an export levy on cocoa in the second half of 2025 to finance programs aimed at improving the quality of cocoa destined for export markets.

“To finance cocoa development programs, there needs to be revenue from cocoa. It has been decided that cocoa will be subject to an export levy,” said Eddy Abdurrachman, President Director of the Plantation Fund Management Agency (BPDPKS), during a press conference at the Coordinating Ministry for Economic Affairs on Wednesday.

Funds raised will be allocated to replanting initiatives and capacity-building efforts to enhance human resources in the cocoa industry.

Eddy assured that the levy will not impose additional burdens on farmers or cocoa businesses. “The overall export cost will remain the same, but the revenue will be split, part to export duties, part to the export levy,” he explained.

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The export levy policy is scheduled to take effect in the third quarter of 2025, requiring a new Finance Ministry regulation. “The process includes public consultation and policy harmonization, and it is targeted to be implemented within two months,” Eddy added.

The export value of processed cocoa products reached US$2.62 billion (approximately Rp 42.7 trillion) in 2024, accounting for 1.05 percent of Indonesia’s non-oil and gas exports and securing the country’s position as the world’s fourth-largest exporter of processed cocoa. Top destinations for Indonesian cocoa products include India, the United States, the European Union, China, and Malaysia.

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