JAKARTA. The government's downstream program is predicted to erode export duty revenue in 2024. This can be seen from the export duty revenue target in 2024, which is only pegged at IDR 17.5 trillion or 11.5% lower than the 2023 outlook.
Quoting kontan.co.id, with the downstream program, commodity exports in raw form will also decrease. Because exports are reduced, export duty payments will also decrease.
However, the government considers that the downstream program needs to be carried out to provide added value to Indonesian commodities and mineral products.
Previously, the government has also changed the provisions regarding export duties by issuing Minister of Finance Regulation (PMK) Number 71 of 2023 which amends PMK Number 39 / PMK.010 / 2022, especially in article 11 and attachments E and F.
Some of the points amended include an increase in the limit on the level of completion of the construction of refining facilities or smelters from the original minimum of 30% to a minimum of 50%.
In addition, the government also eliminated the imposition of a 0% export duty rate for metal mineral exports. So now, the lowest export duty rate that will be imposed on the export of metal mineral processing products varies, depending on the type of metal mineral product produced.
The provision also regulates the level of smelter completion as a criterion for the imposition of export duty rates. The level of smelter completion is divided into three stages. The first stage is for completion rates of at least 50% to below 70%.
The second stage is for completion rates ranging from 70% to less than 90%. Then the third stage starts from 90% to 100%.
In addition, the contraction of export duties was also influenced by the moderation or decline in world prices of major commodities, especially crude palm oil (CPO). (ASP/KEN)