To support the program to accelerate the export of palm oil or Crude Palm Oil (CPO), the Minister of Finance Sri Mulyani set the amount of export duty for various types of CPO.
This provision is contained in the Minister of Finance Regulation (PMK) No. 102/PMK.010/22, which regulates export duty rates for Crude Palm Oil (CPO), Refined, Bleached and Deodorized Palm Oil (RBD Palm Oil, Refined, Leached) and Deodorized Palm Olein (RBD Palm Olein), and Used Cooking Oil (UCO).
In the regulation, the export duty is set for CPO at US$ 488 per metric ton, RBD Palm oil at US$ 351 per metric ton, RBD Palm Olein at US$ 392 per metric ton, UCO at US$ 488 per metric ton and residue from palm oil extraction with a free fatty acid content of 20% and below of US$ 488 per metric ton.
Valid for One Month
However, the imposition of the export duty rate is temporary since it is only valid from 14 June 2022 to 31 July 2022, or more or less for only one month.
Nevertheless, after the deadline has expired, CPO exports can still be carried out provided that they have received an export customs registration number before 31 July 2022.
Following that, PMK Number 39/PMK.010/22 will be referenced again in the export duty provisions for CPO exports with a much lower rate. (see table)
Stabilizing the Supply Chain
Previously, the export acceleration program was initiated by the Ministry of Trade to stabilize the production and trade chain of CPO and its derivatives. So that the availability of vegetable oil commodities in the country is fulfilled.
In addition, export acceleration is also carried out to encourage economic growth, especially in the plantation and industrial sectors and to maintain price stability for oil palm fresh fruit bunches at the planter level.
Referring to the Circular Letter of the Minister of Trade Number 16 of 2022, to participate in this export acceleration program, exporters are required to submit an application as a program participant, not more than 10 June 2022.
The application must be submitted accompanied by a number of data and information such as the total tank capacity of the CPO products owned by the company, the plan for the amount of export allocation and a statement regarding the line of business being undertaken.