The government has waived export levies for 26 types of services at the Public Service Agency (BLU) of the Palm Oil Plantation Fund Management Agency (BPDP) from 15 July to 31 August 2022.
This is because, based on the Minister of Finance Regulation (PMK) Number 115/PMK.05/2022, the tariff for plantation fund levies on palm oil exports is set at IDR 0 per ton. The new regulation modifies the old one, PMK Number 103/PMK.05/2022, which was published just one month earlier, on 13 June 2022.
In the previous regulation, the government only provided exemption facilities for oil palm export services of fresh fruit bunches. Meanwhile, services for the other 25 types of palm oil are subject to levies at various rates depending on the type of service and the applicable Crude Palm Oil (CPO) price.
The types of oil palm export services that are exempted are:
- Fresh Fruit Bunches
- Palm Seeds and Palm Kernels
- Oil Coke and other solid residues from palm fruit and palm kernel
- Empty Fruit Bunches from Palm Oil
- Palm kernel shell in the form of flakes and powder that is ≥ 50 mesh in size
- Palm oil mil effluent
- Used cooking oil
- Crude Palm Oil (CPO)
- Crude Palm Kernel Oil (CPKO)
- Crude Palm Olein
- Crude Palm Stearin
- Crude Palm Kernel Olein
- Crude Palm Kernel Stearin
- Palm Fatty Acid Distillate (PFAS)
- Palm Kernel Fatty Acid Distillate (PKFAD)
- Split Fatty Acid from SPO, CPKO, or their crude fraction with 2% free fatty acid content
- Split Palm Fatty Acid Distillate (PFAD) free fatty acid content of ≥ 70%
- Split Palm Fatty Acif Distillate (SPFAD) kandungan asam lemak bebas ≥ 70%
- Refined, Bleached and Deodorized (RBD) Palm Olein
- RBD Palm Oil
- RBD Palm Stearin
- RBD Palm Kernel Oil
- RBD Palm Kernel Olein
- RBD Palm Kernel Steering
- RBD Palm Olein in branded packaging with a net weight of ≤ 25 kg
- Biodiesel from palm oil with methyl ester content > 96.5% by volume.
The levy for exported palm oil services is a reward for services provided by the BLU BPDK Palm Oil to the ministry of finance.
The exemption from levies on oil palm plantation funds is a request from the BLU BPDP Palm Oil Steering Committee to the Minister of Finance Sri Mulyani Indrawati.
Referring to Article 8 of PMK Number 103/PMK.05/2022, the Steering Committee of BLU BPDP Palm Oil does indeed review the imposition of the levy every two months or at any time.