10% Tariff on CPO May Make Indonesian Exports Uncompetitive

The Jakarta Post reports that the Indonesian Palm Oil Association (Gapki) is expressing concerns over a new 10% levy on crude palm oil exports, up from the previous 7.5%. This increase is expected to significantly reduce exports. The higher levy is intended to fund subsidies for the B40 blending mandate set to take effect in January. However, with domestic production stagnating, the situation for exports is becoming even more challenging.