On 9 August 2015, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic subjects such as an analysis of the recent performance of the rupiah, an analysis of Q2-2015 GDP growth, updates on inflation as well as manufacturing, and unemployment in Indonesia.

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Indonesia’s production of crude palm oil (CPO) is expected to reach 40 million tons in 2020, in line with the government’s national program and downstream CPO roadmap. At the 3rd Indonesia International Palm Oil Processing Machinery & Technology Exhibition, Pranata, Director of Forest and Plantation Industries at the Indonesian Industry Ministry, said that, based on the roadmap, targeted CPO production growth should average 6.8 percent per year up to 2020, so the country will produce 40 million tons by that year.

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On 2 August 2015, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic subjects such a forecast for Indonesia’s economic growth in the Q2-2015, an update on the rupiah rate, foreign direct investment realization in Q2-2015, consumer confidence, new tax regulations in the palm oil sector, and more.

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After introducing palm oil export levies earlier this month, the Indonesian Finance Ministry announced on Tuesday (28/07) that it has implemented another change in the country’s palm oil industry. From now on, export taxes for crude palm oil (CPO) and other palm oil products will be expressed in US dollar instead of a percentage of the price. Indonesia’s palm oil export tax kicks in when the government’s reference CPO price exceeds USD $750 per metric ton. If the price is below this level, palm oil exporters only need to pay the new export levies.

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Indonesian government officials announced that the recently-unveiled palm oil export levies will be imposed starting from Thursday (16/07). The new rules require that a USD $50 per metric ton levy is imposed on crude palm oil (CPO) exports, and a USD $30 per metric ton levy is imposed on exports of processed palm oil products. These palm oil export levies only need to be paid by exporters when the government’s reference CPO price falls below USD $750 per metric ton, effectively cutting the palm oil export tax to zero.

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Uncertainty remains about the timing of the implementation of Indonesia's new palm oil export levies. In May 2015 Indonesian President Joko Widodo signed a new regulation stipulating that a USD $50 (per metric ton) levy is to be imposed on crude palm oil (CPO) exports, and a USD $30 (per metric ton) levy on processed palm oil product exports. Proceeds from these export levies will be used to fund the Indonesian government’s biodiesel (subsidy) program. However, implementation of the new regulation has been delayed several times.

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It is increasingly believed that the El Nino weather phenomenon will hit Indonesia in the next couple of months. Over the past weeks reports already surfaced about unusual dry weather impacting negatively on harvests of agricultural commodities in parts of Southeast Asia. In Indonesia, dry weather traditionally lasts from May to August. However, El Nino may cause warmer conditions and extending these into September hence affecting output in the peak harvest season. This will cut agricultural output and provide inflationary pressure.

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In the past couple of weeks unusually dry weather in several parts of Southeast Asia has led to expectation that harvests of agricultural commodities in the region will be disappointing. More and more weather forecasters are convinced that the El Nino weather phenomenon (i.e. periodical warm ocean water temperatures off the western coast of South America that can cause climatic changes across the Pacific Ocean) is to return this year causing droughts in the key agricultural-producing countries.

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On 10 May 2015, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic matters such as updates on Indonesia’s Q1-2015 economic growth, April inflation, domestic manufacturing activity, the new palm oil export levy, car sales, unemployment, the mobile phone industry, and more.

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Indonesia’s new palm oil export levy is to be implemented in late May 2015. Rida Mulyana, Director General of Renewable Energy at Indonesia’s Ministry of Energy & Mineral Resources, stated that President Joko Widodo signed the regulation last night (05/05). The new levy means that a USD $50 (per metric ton) levy is to be imposed on crude palm oil (CPO) exports, and a USD $30 (per metric ton) levy on processed palm oil product exports. Proceeds from these export levies will be used to fund the government’s biodiesel (subsidy) program.

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This month, our report is completed at a time when Indonesian society is celebrating Idul Fitri, the festivities that mark the end of the holy Ramadan month (the fasting month for Muslims). In fact, the holiday period started on 21 March 2025 for school-children, while society as a whole has an official national holiday from 28 March to 7 April 2025.

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Palm oil ranks among the most important agricultural commodities of Indonesia as this country is the world’s biggest producer of palm oil. This implies that Indonesia generates important foreign exchange earnings from palm oil exports and is a source of income for millions of workers on the plantations.

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Over the past couple of months we have informed on the shortage of cooking oil on the Indonesian market, the subsequent inflationary pressures this shortage caused, and the policies that were imposed by the government to tackle this shortage. But, we did not devote an entire article to this topic.

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Both Indonesia’s export and import performance was quite amazing in March 2022. While we expected imports to rebound ahead of the start of the Ramadan month (on 1 April 2022), a month that typically gives rise to a big increase in consumption, we did underestimate Indonesia’s export performance in last month’s forecast.

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Although there is plenty of opposition to – and criticism on – Indonesia for allowing crude palm oil (or CPO) to play a big role in the domestic economy (Indonesia being the world’s largest producer and exporter of CPO), the country is currently feeling the windfall from soaring CPO prices. And, it is contributing to Indonesia’s recovery from the severe – and still ongoing – novel coronavirus (COVID-19) crisis.

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Indonesia is the world’s biggest palm oil grower as well as the world’s biggest exporter of crude palm oil (CPO). Traditionally, palm oil exports are ranked among the top three export products of Indonesia (along with coal and natural gas). As such, palm oil is of crucial importance for the Indonesian economy.

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It have not been great times for palm oil farmers and traders. Malaysia’s benchmark palm oil price is currently hovering near a three-year low of 1,949 ringgit (approx. USD $464.8) per ton amid high inventories, rising production and sluggish global demand.

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Several negative sentiments are putting pressure on the crude palm oil (CPO) price in the first week of March 2018. These sentiments are expected to continue pushing downward pressure on the CPO price in the remainder of this week. On Monday (05/03) the CPO price on the Malaysia Derivatives Exchange (May 2018 shipments) fell 0.28 percent to 2,467 ringgit per metric ton. Compared to one week earlier, the price has now declined 2.91 percent.

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In the battle between Indonesia and the European Union (EU) regarding the latter's anti-dumping duties on Indonesian biodiesel exports, Indonesia won six out of seven legal challenges. Indonesia had challenged the EU's duties, set in 2013, on biodiesel imports from Indonesia and Argentina. The World Trade Organization (WTO) ruled, largely, in favor of Indonesia.

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The crude palm oil (CPO) price is expected to strengthen in the first quarter of 2018 due to the impact of the La Nina weather phenomenon and rising CPO demand in the traditional big CPO importing countries. This is good news for stakeholders in the palm oil industry as the price has been sliding around 16 percent so far this year (toward the 2,700 Malaysian ringgit per ton level).

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