Malaysian Ministry Plans to use Oil Palm Trunks as Furniture Material

The Indonesian Oil Palm Estate Fund (BPDP-KS) has collected Rp2.1 trillion (US$147 million) in taxes imposed on palm oil exports in the first two months of 2018, which will be used as incentive for biodiesel producers across the country, a news report in The Jakarta Post has said on March 07.  The BPDP-KS aims to collect Rp13 trillion in levies to support the distribution of 3-3.5 million kiloliters of biodiesel this year.

Since July 2015, the BPDP-KS has been imposing export levies of $50 per ton on crude palm oil (CPO) and $30 per ton on processed palm oil products when CPO prices fall below $750.  The revenues from the levies have been used  primarily to provide incentive to biodiesel producers in the fund’s support of the government’s biodiesel production policy.  The government enforced a 15 percent biodiesel blend (B15) policy in 2015, and has enforced a 20 percent biodiesel blend (B20) since 2016.  The incentives cover the price gap between biodiesel and conventional diesel.