Indonesia to revamp oil export levy to boost biodiesel sector

Indonesia aims to revise its palm oil export levy rules to allow higher collection when prices increase as part of moves to underpin an ambitious biodiesel programme.
Since June this year, Indonesia has collected a maximum $55 (€47) levy per tonne on palm oil exports, regardless of the price.
But the new levy collections will hinge on export prices, Coordinating Minister for Economic Affairs Airlangga Hartarto said.
Indonesia collects the levy to finance the gap between the production cost of fuel made from palm oil and from the crude oil price.
The government is currently discussing details of the planned new rules, including the price that would trigger the higher levy, according to another official.
Indonesia currently has a mandatory biodiesel programme known as B30, which has 30% palm oil-based fuel content, and aims to increase the content to 40% next year.