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.

The Tariffs Regulation sets out the tariffs of levies for exports of palm oil and crude palm oil, including their respective derivative products, that must be paid into the Palm Oil Plantation Fund.[3]

These levies apply to:[4]

  1. Palm-oil businesses that export palm-oil commodities, crude palm oil, and their derivatives;
  2. Businesses in the palm oil-based industry; and
  3. Other exporters of palm-oil products, crude palm oil, and their derivatives.

Export Levies

The tariffs of export levies are specified under Appendix I to the Tariffs Regulation, covering 24 various palm oil plantation products with their respective per ton tariff in USD as elaborated under the following table (“Appendix I Products”).[5]

Product

Tariff in USD

(Per Ton)

Fresh fruit bunches 0
Palm oil fruits, seeds, and kernels 20
Oil cake and other residues from palm oil fruits and kernels 20
Empty fruit bunches 10
Flakes and grounded powders of palm oil fruit shells 10
Crude palm oil 50
Crude palm kernel oil 50
Crude palm olein 50
Crude palm stearin 50
Crude palm kernel olein 50
Crude palm kernel stearin 50
Palm fatty acid distillate 40
Palm kernel fatty acid distillate 40
Split fatty acid from crude palm oil, crude palm kernel oil, and their raw fractions with equal or more than 2% free fatty acid content 30
Split palm fatty acid distillate with equal or more than 70% free fatty acid content 30
Split palm kernel fatty acid distillate with equal or more than 70% free fatty acid content 30
Refined, bleached, and deodorized palm olein 30
Refined, bleached, and deodorized palm oil 20
Refined, bleached, and deodorized palm stearin 20
Refined, bleached, and deodorized palm kernel oil 20
Refined, bleached, and deodorized palm kernel olein 20
Refined, bleached, and deodorized palm kernel stearin 20
Refined, bleached, and deodorized palm olein with branded packaging and weighing equal or less than 25 kilograms 20
Biodiesel from palm oil with methyl ester content of more than 96.5 percent 20

These tariffs are also used as reference for:[6]

  1. Mixture of Appendix I Products (two or more); and
  2. Mixture of Appendix I Products with other products not subject to levies as set out under Appendix II to the Tariff Regulation (“Appendix II Products”).

The tariffs of the levies for mixtures of Appendix I Products will be based on the content of the mixture with the highest tariff. Meanwhile for Appendix II Products, the tariffs of the levies will be determined by the tariff of the Appendix I Product used in the mixture. If the mixture contains more than one Appendix I Product, the levies will be based on the Appendix I Product with the highest tariff notwithstanding the composition of the product.[7]

 


FOOTNOTES

[1] For an elaboration on the Presidential Regulation, see: Andin Aditya Rahman, “Indonesia Palm Oil Plantation Fund,” 28 May 2015

[2] Agency Regulation, Arts. 1 (1), and 2

[3] Tariff Regulation, Art. 2

[4] Tariff Regulation, Art. 6 (1)

[5] Tariff Regulation, Art. 3 (1)

[6] Tariff Regulation, Art. 3 (4)

[7] Tariff Regulation, Art. 4


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