JAKARTA – The Indonesia government has changed the regulation on export duties of palm oil, following its decision to revoke its policies on palm oil domestic market obligation (DMO) and palm oil domestic price obligation (DPO).

The new regulation is contained in the finance minister regulation (PMK) No.23/PMK.05/2022 on third revision of PMK No.57/PMK.05/2020 on the tariff for services of the oil palm plantation fund management board (BPDPKS) with the finance ministry. The PMK No.23/2022 has been effective since 18 March 2022.

Majalah Sawit Indonesia reported through its website on Monday, 21 March 2022, that based on the new regulation’s attachment, there are 17 points that stipulate the export duties of palm oil, crude palm oil (CPO), and downstream palm oil products. The duties are based on the price of the crude palm oil at US$750 and below per ton; at the price of between US$750 per ton and US$800 per ton; and the highest at over US$1,500 per ton.

PMK Nomor 23/2022 applies the progressive tariff scheme, which is the same with the scheme of PMK 76/PMK.05/2021. Previously, the CPO ceiling price for the application of the duties was US$1,000 per ton, but now it is raised to US$1,500 per ton.

The new regulation also stipulates that the export tariff of refined, bleached and deodorized (RBD) palm oil and RBD palm kernel oil is increased from US$25 per ton to US$38 per ton. In addition to that, the export of used cooking oil (UCO) is also charged with a flat tariff at US$35 per ton; while the export tariff of palm oil mill effluent (POME) is set at the flat rate of US$5 per ton.

Meanwhile, Trade Minister Muhammad Lutfi said that the government had revoked the policies on domestic market obligation (DMO) and domestic price obligation (DPO) after revoking its policy on the retail price ceiling (HET) of palm cooking oil.

Source: wartaekonomi.co.id | Featured image via theprint.in