Government Cuts Export Duty Tariff on Palm Oil Shells

The government has cut the export duty rate on one of the derivative products from palm oil, namely palm oil powder and palm oil shell powder measuring 50 mesh and above.

In the previous regulation, the export duty rates for these commodities ranged from USD 7 per metric ton (MT) to USD 30 per MT.

Meanwhile, according to the latest regulation, the tariff ranges from USD 3 per MT to USD 13 per MT which is valid for 5 days since the regulation is stipulated on 5 January 2022.

The amount of the export duty for oil palm shells is set differently every month, as stated in Attachment II C of the policy:

Description

Tariff Post

Tariff (USD per Metric Ton)

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Palm Kernel Shell is in the form of powder and flakes with a particle size of 50 mesh and above 50 mesh

Meanwhile, export duty rates for other palm oil derivative products did not change.

This reduction is regulated in Minister of Finance Regulation Number 1/PMK.010/22, which is the third amendment of PMK Number 13/PMK.010/2017.

Encouraging Exports

This policy is carried out to increase export opportunities for palm oil-based commodities. Thus, it can increase the source of state income or foreign exchange from export activities.

Referring to the data from the Ministry of Trade, the export value of Indonesian palm oil shell products in January-September 2021 was recorded at USD 268 million.
The export value rose 27.01% compared to the same period a year earlier.

Some of the export destinations for Indonesian palm oil shells are Japan, Thailand, Singapore, South Korea, and India.

Several countries supplying palm oil shells in Indonesia include Jambi, Riau, West Sumatra, Central Kalimantan, and North Sumatra.