Indonesia’s Export Duty Receipts Up 34.4% Thanks to Palm Oil
Jakarta. Indonesia’s export duty rose in double digits in August, which the government attributed to palm oil shipments.
Indonesia has been collecting export duties on palm oil shipments to stabilize prices and grow its state revenue. The Finance Ministry announced Friday that it had amassed Rp 25.1 trillion ($1.4 billion) in export duties between January and August 2026. Its collection saw a 34.4% year-on-year (yoy) growth from Rp 18.7 trillion (nearly $1.1 billion) seen in 2025.
“Exports usually use foreign currencies. If the said currency strengthens, exports will subsequently rise, thus driving up the duty receipts,” Finance Minister Suahasil Nazara told reporters in Jakarta.
His presentation slides stated that “rising palm oil prices” had subsequently led to higher duty collection.
Indonesia set the reference price for palm oil at $996.52 per metric ton for the entirety of August. This brought the export duty to $148 per metric ton that month.
The country’s total revenue from customs excise and duties to Rp 210.2 trillion ($11.8 billion) as of end-August. Some Rp 148.7 trillion (almost $8.4 billion) came from excise, and the remaining Rp 36.4 trillion ($2 billion) was in import duties.
According to the latest data from the government-owned statistics agency BPS, Indonesia’s annual palm oil exports totaled $14.79 billion as of July 2026, up by 5.49% from the previous year. The shipment volume slipped by 0.97% to 13.51 million tons. Palm oil prices in international markets skyrocketed 12.81% year-on-year in July to $1,101 per metric ton.
The palm oil-driven export duty has helped Indonesia maintain its deficit. The country’s total state receipts topped Rp 2,055.69 trillion or at least $115 billion, bringing a budget shortfall to 0.93% of the gross domestic product (GDP) by the end of August. The deficit was well below the legal cap of 3%, something which the government will stick to despite lawmakers’ proposal to relax the threshold.
Indonesia is the world’s largest supplier of palm oil, which producers across the globe use to make cosmetics, personal care products, and baked goods. China and India top Indonesia’s client list for this coveted vegetable oil.
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