Ministry of Finance Drafts Adjustment to Export Tariffs for Palm Oil Plantation Commodities

The Ministry of Finance (“ Ministry ”) is finalizing the Draft Regulation of the Minister of Finance (“ Minister ”) on the Service Tariffs of the Public Service Agency forPlantation Fund Management Agency (Badan Layanan Umum Badan Pengelola Dana Perkebunan– “ BLU - BPDP ”). This regulation will focus on adjusting the levy tariffs for plantation funds on the export of plantation commodities, such as palm oil, crude palm oil (“ CPO ”), and their derivative products.

"This service tariff adjustment aims to optimize revenue from plantation fund levies, which will later be allocated to support various development programs in the plantation sector and improve farmers' welfare," explained Ririn Kadariyah, Director of Financial Management Development of the Public Service Agency at the Directorate General of Treasury, Ministry of Finance, to Hukumonline.

The proposed levy tariffs will later be calculated based on the reference price of CPO set by the Minister of Trade. This tariff determination is expected to provide legal certainty and convenience for exporters, while also enhancing the competitiveness of Indonesia's plantation products in the international market.

“It is still being harmonized among the relevant Ministries and Agencies, hopefully it can be finalized this year,” she added.