Tariffs of the Indonesia Palm Oil Plantation Fund

As follow-up to Presidential Regulation No. 61 of 2015 regarding the Accumulation and Usage of the Palm Oil Plantation Fund (“Presidential Regulation”),[1] the government has established the Palm Oil Plantation Management Agency (“Agency”) on 11 June 2015 through the issuance of Minister of Finance Regulation No. 113/PMK.01/2015 regarding Organization and Framework of the Palm Oil Plantation Management Agency (“Agency Regulation”).

With the establishment of the Agency under the Minister of Finance in accordance with the Agency Regulation, the Agency is ready to implement the collection of levies and contributions from palm oil businesses and manage the Palm Oil Plantation Fund as mandated by the Presidential regulation.[2]

In light of the establishment of the Agency, the government has furthered the implementation of the Palm Oil Plantation Fund with the issuance of Minister of Finance Regulation No. 133/PMK.05/2015 regarding Service Tariffs payable to the Public Service Agency for Palm Oil Plantation Fund Management at the Ministry of Finance (“Tariffs Regulation”) on 16 July 2015.

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Indonesia Palm Oil Plantation Fund

A newly regulated matter under Law No. 39 of 2014 regarding Plantations (“Plantation Law”) when compared to its predecessor is the provisions on the so-called Plantation Funds, which was mandated to be regulated further under a Government Regulation.

In fulfilling this mandate, Government Regulation No. 24 of 2014 regarding Collection of Plantation Fund (“Government Regulation”) was recently issued as an umbrella instrument for Plantation Funds for the following commodities:

  1. Palm oil;
  2. Coconut;
  3. Rubber;
  4. Coffee;
  5. Cocoa;
  6. Sugarcane; and
  7. Tobacco.

Insofar, the only commodity that has been provided with a Plantation Fund is palm oil, as contained under Presidential Regulation No. 61 of 2015 regarding the Accumulation and Usage of the Palm Oil Plantation Fund (“Presidential Regulation”), which was issued concurrently with the Government Regulation.

This article will elaborate this so-called Palm Oil Plantation Fund (“Fund”) under the Presidential Regulation, of which similar provisions will most likely be apply to the Plantation Fund of other commodities as well.

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