Ministry of Finance Recalculates Export Levies for Palm Oil Plantation

The government will soon issue a Regulation of the Minister of Finance (“PMK”) on the Service Tariffs of the Public Service Agency for Plantation Fund Management Agency (Badan Layanan Umum Badan Pengelola Dana Perkebunan/BLU-BPDP) for the palm oil plantation sector, crude palm oil (“CPO”), and its derivative products. The regulation will increase the export levy (pungutan ekspor – “PE”) of palm oil to between 4.5% and 10% of the reference price of crude palm oil, up from the current 3% to 7.5%.

“Just wait for the further regulation, as the PMK is expected to be issued around next month,” said an official from the Directorate General of Treasury at the Ministry of Finance to Hukumonline.

It is understood that every economic burden, including taxes and PE imposed on CPO trade, will be passed on to the palm oil farmers as the lowest link in the chain. In PMK No. 62 of 2024 (“PMK 62/2024”), it was previously regulated that the PE tariffs for CPO which is classified under export group II is set at 7.5% of the CPO Reference Price as determined by the Ministry of Trade.

“They are still calculating the exact figure, whether it will be high or low,” he added.