ANNOUNCEMENT 11 Mar 2019

In March 2019, Indonesia temporary eliminated plantation fund tariff for export of palm oil and its derivative products for 3 months

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Minister of Finance Regulation No.23/PMK.05/2019 (in Bahasa Indonesia): https://peraturan.bpk.go.id/Home/Details/128010/pmk-no-23pmk052019

Inception date: 01 Mar 2019 | Removal date: 31 May 2019

Export tax

On 6 March 2019, Indonesia issued Minister of Finance Regulation (PMK) No.23/PMK.05/2019 to temporary eliminate the plantation fund tariffs for the export of palm oil and its derivative products from 1 March 2019 - 31 May 2019. The plantation fund tariffs have been eliminated from the classification with maximum values of tariff ranging between 10 percent - 50 percent depending on the affected product. These tariffs' elimination temporary replaced the previous plantation tariffs on the subject good imposed by Minister of Finance Regulation No.152/PMK.05/2018 (see related state acts). 

The plantation fund tariff is another export levy beside export's custom duty that is imposed on Indonesian exporters of palm oil and its derivative products. 

Regulation PMK No.23/PMK.05/2019 came into force on 11 March 2020 while the plantation fund tariffs elimination occurred on 1 March 2019.

Inception date: 01 Jun 2019 | Removal date: 30 Sep 2019

Export tax

On 31 May 2019, the temporary elimination of the plantation fund tariffs for the export of palm oil and its derivative products based on the Minister of Finance Regulation (PMK) No.23/PMK.05/2019 had been removed. From 1 June 2019, the tariffs were set out back as previous plantation fund tariffs on the subject good imposed by Minister of Finance Regulation No.152/PMK.05/2018 (see related state acts). The arrangement of tariffs was then as follows: 

  1. if the market price of CPO was below USD 570/ tonne, the plantation fund tariffs were zero for all palm oil and its derivative products
  2. if the market price of CPO was between USD 570/ tonne - USD 619/ tonne, the plantation fund tariffs for all palm oil and its derivative products were at 50% of tariffs set out in the Ministry of Finance Regulation No. 114/PMK.05/2015 and Minister of Finance Regulation No. 81/PMK.05/2018 (see related state acts).
  3. if the market price of CPO was above USD 619/tonne, the plantation fund tariffs for all palm oil and its derivative products were the same as tariffs set out in the Ministry of Finance Regulation No. 114/PMK.05/2015 and Minister of Finance Regulation No. 81/PMK.05/2018 (see related state acts).

The plantation fund tariff is another export levy beside export's custom duty that is imposed on Indonesian exporters of palm oil and its derivative products. 

Regulation PMK No.23/PMK.05/2019 was terminated on 31 May 2019 and the plantation fund tariffs set out in Minister of Finance Regulation No.152/PMK.05/2018 came into force on 1 June 2019.