Indonesia Hikes Palm Export Levy to Boost Biofuel, Replanting

A worker applies fertilizer to young oil palm trees in Indonesia.

Photographer: Muhammad Fadli/Bloomberg

Indonesia raised its export levy on crude palm oil from 7.5% to 10% starting May 17 in a widely expected move to fund a biofuel program and replanting efforts in the world’s largest producer.

The government also increased levies for outbound shipments of other palm oil products, according to a regulation issued by the finance ministry.