InfoSAWIT, JAKARTA – The Director of Exports for Agricultural and Forestry Products at the Indonesian Ministry of Trade, Wijayanto, stated that the main purpose of the palm oil export levy policy is to encourage the creation of high-value-added products.

According to him, the levy mechanism, regulated through a Minister of Finance Regulation, is not merely a burden on exporters but a part of the national downstreaming strategy. "This levy is intended so that businesses do not just export raw materials, but also develop downstream palm oil products that have greater added value," Wijayanto explained during an online discussion attended by InfoSAWIT on Monday (9/22/2025).

Additionally, the funds collected from the export levy are managed to support various strategic programs in the palm oil sector, from increasing productivity and strengthening farmer capacity to building the sustainability of the national palm oil industry. "The government views the export levy not only as a fiscal instrument but also as a development instrument," he added.

With this policy, the government hopes that Indonesia's palm oil industry will not only be a supplier of raw materials to the world but also be able to strengthen its competitiveness through product diversification, market expansion, and provide tangible benefits to the domestic economy. (T2)