Indonesia to Use Palm Oil Levy to Subsidise Fuel for Fishing Vessels

FUEL POLICY - JAKARTA, July 15 - Indonesia will subsidise diesel fuel for midsize fishing vessels using funds collected from palm oil and cocoa export levies, the government said.

The subsidy is estimated to be under 1.5 trillion rupiah ($83.01 million), Mohammad Alfansyah, an official with the plantation fund agency, said on Wednesday.

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Plantation fund data showed as of May it has collected 17.4 trillion rupiah ($963.19 million) in levies, nearly 65% of 2026's collection target.

The subsidy will cover 400,000 metric tons of gasoil for fishing vessels between 30 gross tons and 200 gross tons, chief economic minister Airlangga Hartarto said earlier this â??week, to maintain business sustainability and improve fisheries sector competitiveness.

The agency has also allocated 32.3 trillion rupiah for Indonesia's biodiesel mandate this year.

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Alfansyah said the current levy rate would be sufficient to finance the agencys programmes including biodiesel subsidy, smallholders replanting, and improving supporting facilities for the palm oil sector.