IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Apr 2010 | Removal date: open ended
Still in force

Export tax

According to Dow Jones (25March 2010), Indonesia raised the crude palm oil (CPO) export tax forApril 2010 to 4.5% from 3% in March.
 
Indonesia uses the average CPOspot price at the port of Rotterdam as a benchmark to set its monthly CPO exporttax. The tax, which can reach as high as 25% according to an article byCommodity Online, is imposed to ensure sufficient domestic supplies ofthe oil when global CPO prices are high by discouraging exports.
Indonesia as being a leading CPOexporter is likely to increase the world CPO price with this practiceand thereby harms commercial interests of importers.
 
Further changes in the export tax:
On 25 August 2011, Indonesia decided to lower the export tax on palm oil. The maximum export tax will decrease from 25% to 22.5% and even 13% in the case of refined palm products. This measure came into force on 1 October 2011.

 
In October 2012, crude palm oil was taxed at 13.5%. In the following month, Indonesia lowered the taxes to 9% for crude oil and 3% for refined products. In January 2013, they trimmed the export tax for crude palm oil to 7.5%. Later in January, the Government confirmed the tax be further decreased in 2013:

'Ideally, it should be zero to allow us to compete with the rival, which applies zero per cent' (Trade Minister Gita Wirjawan on 11 Jan 2013).
 
On 26 September 2014, the Indonesian Ministry of Trade introduced regulation 60/M-DAG/PER/9/2014 which practically removed the export tax on crude palm oil for October 2014. Considering the falling palm oil prices, the export tax removal will affect also 27 other palm products.
 
On 31 December 2015, the Indonesian Ministry of Trade published a press release citing its regulation 122/M-DAG/PER/12/2015. The regulation lowered the reference price from 580.37USD/MT to 578.88USD/MT. Given the low market prices, the actual export duty has remained at 0 USD.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

216 Vegetable oils
1511 Palm oil and its fractions, whether or not refined, but not chemically modified.
151110 Crude oil
151190 Other
1513 Coconut (copra), palm kernel or babassu oil and fractions thereof, whether or not refined, but not chemically modified.
151311 Crude oil
151319 Other
151321 Crude oil
151329 Other
1516 Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, interesterified, reesterified or elaidinised, whether or not refined, but not further prepared.
151620 Vegetable fats and oils and their fractions
219 Oil-cake; flours & meals of oil seeds; vegetable waxes; etc.
2306 Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of vegetable fats or oils, other than those of heading 23.04 or 23.05.
230650 Of coconut or copra
230660 Of palm nuts or kernels
341 Basic organic chemicals
3823 Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols.
382311 Stearic acid
382312 Oleic acid
382319 Other
382370 Industrial fatty alcohols

Please report this page in case you detect an inaccuracy in its content.