Revision of the Excise Exemption for Ethyl Alcohol (BBM)

The Government is currently harmonizing Draft Regulation of the Minister of Finance (Rancangan Peraturan Menteri Keuangan- “ RPMK ”) on Amendment to Regulation of the Minister of Finance No. 82 of 2024 on Procedures for Excise Exemption (“ Permenkeu 82/2024 ”). The proposed regulatory adjustments will focus on the excise exemption applicable to ethyl alcohol used in blending with petroleum refinery products.

“The adjustment is being made to support the Government’s program in the field of national energy security, while at the same time advancing the transition toward and broader utilization of clean energy,” stated Nirwala Dwi Heryanto, Director of Communication and User Guidance at Customs and Excise.

The excise exemption will be granted to industries engaged in the mixing of petroleum refinery fuel products with biofuel or bioethanol, as classified under the Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia- “ KBLI ”) 19206. The procedures for the mixing and destruction of ethyl alcohol granted excise exemption are regulated under Regulation of the Director General of Customs and Excise No. PER-16/BC/2024 (“ PerDJBC 16/2024 ”).