Government Reorganizes Export Duty on CPO and Other Commodities

The government, through the Ministry of Finance (Kemenkeu), is finalizing the draft amendment to Regulation of the Minister of Finance No. 38 of 2024 on the Determination of Export Goods Subject to Export Duty and Export Duty Tariffs (“ Permenkeu 38/2024 ”). This adjustment is made to ensure the availability of domestic needs for these strategic commodities remains maintained amid increasing export demand.

“For the amount of export duties on certain types of export goods, such as cocoa beans, palm oil products, Crude Palm Oil (“ CPO ”), and its derivative products, adjustments will be made in accordance with current conditions,” said Unan Pribadi, Director of Harmonization of Laws and Regulations III (HPP III) at the Directorate General of Laws and Regulations (DJPP), Ministry of Law and Human Rights, to Hukumonline.

The export price used for calculating export duty is determined by Decree of the Minister of Finance, which refers to the export benchmark price and reference price set by the Minister of Trade. Additionally, the regulatory changes aim to balance the interests between state revenue from export duties and the protection of domestic industries that rely on raw material supplies from within the country.

“It is currently in the process of harmonization, rounding, and finalizing the concept,” he explained.