PALMOILMAGAZINE, JAKARTA – The Indonesian Ministry of Finance has officially implemented Minister of Finance Regulation (PMK) No. 62/2024, which outlines the service tariffs for the Palm Oil Plantation Fund Management Agency (PO PFMA). This new regulation introduces significant changes to the export duties on palm oil products, linking the duties more closely to fluctuations in crude palm oil (CPO) prices.
According to an overview of the regulation reviewed by Palmoilmagazine.com on September 20, 2024, the revised export levy remains connected to global CPO price trends. However, the new framework establishes clearer tariff categories based on product type and specific CPO pricing levels.
The previous regulation, RMF Number 154/2022, had categorized tariffs according to CPO price ranges, imposing levies between $85 and $240 per ton, contingent on global CPO prices within specified brackets ranging from $800 to $1,430 per ton.
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Effective September 11, 2024, the updated RMF Number 62 shifts away from this progressive citation system. Instead, new tariffs will be set as a percentage of the CPO reference price determined by the Ministry of Trade.
The regulation stipulates export duties varying by product group as follows:
Group I: Fresh fruit bunches will incur no charges; palm kernel and palm fruit will be charged 25%; palm kernel expeller/palm kernel meal will also be charged 25%; palm empty fruit bunch will incur a 15% charge; and palm kernel shell will be charged 3%.
Group II: Crude palm oil, including low free fatty acid crude palm oil, crude palm kernel oil, palm oil mill effluent oil, empty fruit bunch oil, and high acid palm oil residue will be subject to a 7.5% levy based on the CPO reference price.
Group III: Crude palm olein, crude palm stearin, crude palm kernel olein, crude palm kernel stearin, palm fatty acid distillate, and palm kernel fatty acid distillate will face a 6% export duty from the CPO reference price.
Group IV: Products including refined, bleached, and deodorized (RBD) palm olein, RBD palm oil, RBD palm stearin, and RBD palm kernel olein will incur a 4.5% charge based on the CPO reference price.
Group V: RBD palm olein packaged in branded containers weighing 25 kg or less, biodiesel, and fatty acid methyl esters will be taxed at 3% of the CPO reference price.
These changes are expected to have a significant impact on Indonesia’s palm oil export landscape, providing a more adaptable framework that aligns with global market conditions.
(P2)
