Changes in Tariffs of Plantation Fund Levies on Palm Oil Exports

s Denny Vissaro
s Lenida Ayumi
By Denny Vissaro, Lenida Ayumi
Denny Vissaro
Lenida Ayumi
The Ministry of Finance amends the provisions on the service tariffs for the Public Service Agency (Badan Layanan Umum/BLU) of Indonesia Palm Oil Plantation Fund Management Agency (Badan Pengelola Dana Perkebunan Kelapa Sawit/BPKDS). This levy constitutes compensation for services provided by BLU BKPDS to the Ministry of Finance.
 
Changes to service tariffs are outlined in the Minister of Finance Regulation No. 76/PMK.05/2021 concerning the Second Amendment to the Minister of Finance Regulation No. 57/PMK.05/2020 concerning Service Tariffs for Public Service Agency of Indonesia Palm Oil Plantation Fund Management Agency at the Ministry of Finance (MoF Reg. 76/2021).
 
Through MoF Reg. 76/2021, the Ministry of Finance revises the tariffs of plantation fund levies on exports of palm oil, crude palm oil (CPO), and derivative products. On another note, the Ministry of Finance also increases the price thresholds for palm oil, crude palm oil (CPO), and derivative products, which are subject to plantation fund levies on exports of palm oil, CPO, and derivative products.
 
Changes to service tariffs and thresholds are listed in Appendix I of MoF Reg. 76/2021. As per the Appendix of MoF Reg. 76/2021, the CPO price threshold subject to plantation fund levies on CPO exports rises to US$750 per ton, from formerly US$670 per ton. Furthermore, for every CPO price increase of US$50 per ton, the tariff of plantation fund levy will also increase by US$20.
 
In further detail, in the event the CPO price reaches US$750 per ton, the tariff of plantation fund levy on CPO exports is US$ 55. Next, if the CPO price is above US$750 to US$800 per ton, the tariff of plantation fund levy on CPO exports is US$75. Additionally, if the CPO price is above US$800 to US$850 per ton, the tariff of plantation funds levy on CPO exports is US$95.
 
Furthermore, CPO prices above US$850 to US$900 per ton shall be subject to a plantation fund levy tariff on CPO exports of US$115. Next, if the CPO price is above US$900 to US$950 per ton, the tariff of plantation fund levy on CPO exports is US$135. In contrast, if the CPO price is above US$1000, the tariff will remain as per the highest tariff for plantation fund levy on CPO exports of US$175.
 
In addition to the threshold and tariffs of plantation fund levies on CPO exports, the Appendix of MoF Reg. 76/2021 also outlines the thresholds and tariffs of plantation fund levies on exports of palm oil and other derivative products. MoF Reg. 76/2021 comes into force as of 2 July 2021 and replaces the tariffs formerly applicable under MoF Reg. 191/2020.