{"id":29719,"date":"2025-05-20T06:50:24","date_gmt":"2025-05-20T06:50:24","guid":{"rendered":"https:\/\/gapki.id\/en\/?p=29719"},"modified":"2025-05-20T06:50:24","modified_gmt":"2025-05-20T06:50:24","slug":"gapki-export-levy-rise-makes-palm-oil-less-competitive","status":"publish","type":"post","link":"https:\/\/gapki.id\/en\/news\/2025\/05\/20\/gapki-export-levy-rise-makes-palm-oil-less-competitive\/","title":{"rendered":"GAPKI: Export Levy Rise Makes Palm Oil Less Competitive"},"content":{"rendered":"

JAKARTA \u2013 The Indonesian Palm Oil Association\u2019s (GAPKI) Chairman Eddy Martono said the increase of export levy of crude palm oil (CPO) from 7.5% to 10% will weaken the competitiveness of Indonesia\u2019s palm oil products at the global market.<\/p>\n

\"\"
GAPKI Chairman Eddy Martono via sawitkita.id<\/em><\/figcaption><\/figure>\n

Eddy Martono was commenting on the decision of the finance ministry to increase the export levy of palm oil from 7.5% to 10%, starting from Saturday, 17 May 2025. The new tariff is stated in the finance ministry regulation No. 30\/ 2025 (PMK No. 30\/2025) on service tariff of the Public Service Agency For Plantation Fund Management (BLU BPDP), which was issued on 14 May 2025 and made effective since 17 May 2025.<\/p>\n

\u201cThe increase of export levy will make our palm oil products less competitive at the global market as compared to our competitors\u2019 products,\u201d Eddy said in Jakarta on Friday (16\/5\/2025).<\/p>\n

According to him, the new export tariff\u00a0 will further increase the export burden of Indonesia\u2019s palm oil products. \u201cPreviously, our palm oil industry has been subjected to three export burdens — Domestic Market Obligation (DMO), export levy (PE), and export tax (BK). Total financial burden borne by the palm oil industry already reached US$221 per ton. With the new tariff, our burden will certainly increase. But we could not yet quantify it as we have yet to make a new calculation on this,\u201d said Eddy.<\/p>\n

Eddy said that the increase of tariff will also impact the welfare of smallholders who are greatly susceptible to the price fluctuations of fresh fruit bunches (FFB) they sell. \u201cThe decrease in CPO prices at the domestic market will reduce the income of smallholders,\u201d he said.<\/p>\n

\u201cIt means the price of raw material for our downstream industries will be cheaper. But on the other side, the price of our palm oil exports will also rise due to the increase of export levy,\u201d he said.<\/p>\n

Considering the potential impacts, GAPKI has formally sent a letter to Finance Minister Sri Mulyani Indrawati, asking for the government to delay the implementation of the new export levy of palm oil. \u201cIncreasing the palm oil export levy amid the uncertain end of trade war between USA and China, and the ongoing geopolitical tensions in a number of regions will further weaken the competitiveness of Indonesia\u2019s palm oil products,” GAPKI stated in the letter.<\/p>\n

A spokesman of BPDP said that the GAPKI\u2019s request will be discussed by related ministries in the near future. So far, there has been no response from the ministry of finance and the economic coordinating ministry.<\/p>\n

But Eddy Martono said that the financial burden of the palm oil industries will only weaken the competitiveness of Indonesia\u2019s palm oil products at the global market, and it will not result in layoffs. “I think it will only reduce our competitiveness, and won\u2019t result in layoffs,” Eddy told Kontan.co.id on Sunday (18\/05\/2025).<\/p>\n

He also said that currently Indonesia\u2019s palm oil exports are dominated by downstream products, mainly refined palm oil and oleo-chemical products. <\/em>“Our export in the form of CPO is only around 10%,” said Eddy.<\/p>\n

Based on data from GAPKI, in 2024 total volume of Indonesia\u2019s palm oil exports reached 29.5 million tons, consisting mostly of refined palm oil at 20.4 million tons and oleo-chemical at 4.8 million tons. (*)<\/p>\n","protected":false},"excerpt":{"rendered":"

JAKARTA \u2013 The Indonesian Palm Oil Association\u2019s (GAPKI) Chairman Eddy Martono said the increase of export levy of crude palm oil (CPO) from 7.5% to 10% will weaken the competitiveness of Indonesia\u2019s palm oil products at the global market.<\/p>\n","protected":false},"author":1,"featured_media":29720,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":70,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[3710,3708,3709],"tags":[],"class_list":["post-29719","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-info-activity","category-publication","category-recent-news"],"yoast_head":"\nGAPKI: Export Levy Rise Makes Palm Oil Less Competitive - 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BKF Chairman Febrio Nathan Kacaribu made the statement in response to the letter sent by the\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/05\/sri_mulyani_kemenkeu_.jpg?fit=683%2C423&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/05\/sri_mulyani_kemenkeu_.jpg?fit=683%2C423&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/05\/sri_mulyani_kemenkeu_.jpg?fit=683%2C423&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":29113,"url":"https:\/\/gapki.id\/en\/news\/2024\/12\/21\/govt-to-lift-palm-export-levy-to-10-to-support-b40-program\/","url_meta":{"origin":29719,"position":1},"title":"Govt To Lift Palm Export Levy To 10% To Support B40 Program","author":"admin","date":"December 21, 2024","format":false,"excerpt":"JAKARTA \u2013 The government has planned to raise export levy (PE) of Crude Palm Oil (CPO) as part of effort to finance the subsidy for the mandatory program of biodiesel 40 percent (B40), which is a mixture of 60 percent conventional fossil diesel fuel and 40 percent biodiesel derived from\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/12\/B40_PALMOIL_bottle_.webp?fit=1200%2C686&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/12\/B40_PALMOIL_bottle_.webp?fit=1200%2C686&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/12\/B40_PALMOIL_bottle_.webp?fit=1200%2C686&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/12\/B40_PALMOIL_bottle_.webp?fit=1200%2C686&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/12\/B40_PALMOIL_bottle_.webp?fit=1200%2C686&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":29573,"url":"https:\/\/gapki.id\/en\/news\/2025\/04\/09\/gapki-asks-for-lower-export-tax-to-trim-usa-tariff-impact\/","url_meta":{"origin":29719,"position":2},"title":"GAPKI Asks For Lower Export Tax To Trim USA Tariff Impact","author":"admin","date":"April 9, 2025","format":false,"excerpt":"JAKARTA \u2013 The Indonesia Palm Oil Producers have asked the government to reduce the export tariffs imposed on palm oil exports as a way to mitigate the impacts of President Donald Trump\u2019s policy of high reciprocal tariff and maintain the competitiveness of Indonesian palm oil products at the USA market.\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/12\/sumatera_kebun_sumatera_Sawit_kebun_sawit.jpg?fit=792%2C517&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/12\/sumatera_kebun_sumatera_Sawit_kebun_sawit.jpg?fit=792%2C517&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/12\/sumatera_kebun_sumatera_Sawit_kebun_sawit.jpg?fit=792%2C517&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/12\/sumatera_kebun_sumatera_Sawit_kebun_sawit.jpg?fit=792%2C517&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":30174,"url":"https:\/\/gapki.id\/en\/news\/2025\/08\/16\/gapki-as-matters-stand-b50-program-will-cut-cpo-export\/","url_meta":{"origin":29719,"position":3},"title":"GAPKI: As Matters Stand, B50 Program Will Cut CPO Export","author":"admin","date":"August 16, 2025","format":false,"excerpt":"JAKARTA \u2013 The Indonesian Palm Oil Association (GAPKI) has projected that Indonesia\u2019s export of crude palm oil (CPO) this year is potential to decrease up to 1.5 million tons. The decrease is seen potential to hinder the government\u2019s plan to implement the mandatory program of biodiesel 50 percent \u00a0(B50) in\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/08\/eddy_martono_ketum_gapki_pusat.jpeg?fit=544%2C360&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/08\/eddy_martono_ketum_gapki_pusat.jpeg?fit=544%2C360&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/08\/eddy_martono_ketum_gapki_pusat.jpeg?fit=544%2C360&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":27141,"url":"https:\/\/gapki.id\/en\/news\/2023\/12\/20\/gapki-biodiesel-incentive-stabilizes-palm-oil-prices\/","url_meta":{"origin":29719,"position":4},"title":"GAPKI: Biodiesel Incentive Stabilizes Palm Oil Prices","author":"admin","date":"December 20, 2023","format":false,"excerpt":"JAKARTA \u2013 The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that the fund managed by the Oil Palm Plantation Fund Management Board (BPDPKS) to pay incentives for the price spread between the market index price of biodiesel and diesel fuel has contributed in stabilizing the price of crude\u2026","rel":"","context":"In "Info & Activity"","block_context":{"text":"Info & Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/09\/eddy_martono_agrofarm.co_.id_.png?fit=776%2C513&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/09\/eddy_martono_agrofarm.co_.id_.png?fit=776%2C513&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/09\/eddy_martono_agrofarm.co_.id_.png?fit=776%2C513&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/09\/eddy_martono_agrofarm.co_.id_.png?fit=776%2C513&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":29608,"url":"https:\/\/gapki.id\/en\/news\/2025\/04\/17\/gapki-prepares-strategy-to-deal-with-usa-reciprocal-tariff\/","url_meta":{"origin":29719,"position":5},"title":"GAPKI Prepares Strategy To Deal With USA Reciprocal Tariff","author":"admin","date":"April 17, 2025","format":false,"excerpt":"JAKARTA \u2013 The policy of import tariff of 32% imposed by USA President Donald Trump against Indonesia has significantly burdened palm oil exports. The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that the new USA tariff will reduce Indonesian competitiveness in the USA market, where Indonesian exports have\u2026","rel":"","context":"In "Info & Activity"","block_context":{"text":"Info & Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/04\/Eddy_Martono_Melalui_coroporate_insight.webp?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/04\/Eddy_Martono_Melalui_coroporate_insight.webp?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/04\/Eddy_Martono_Melalui_coroporate_insight.webp?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/04\/Eddy_Martono_Melalui_coroporate_insight.webp?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/04\/Eddy_Martono_Melalui_coroporate_insight.webp?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/05\/eddy_martono_sawitkita.id_.jpg?fit=807%2C492&ssl=1","_links":{"self":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/29719","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/comments?post=29719"}],"version-history":[{"count":1,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/29719\/revisions"}],"predecessor-version":[{"id":29721,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/29719\/revisions\/29721"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media\/29720"}],"wp:attachment":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media?parent=29719"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/categories?post=29719"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/tags?post=29719"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}