Finance Minister Revises CPO Export Levy Rule

FINANCE Minister Sri Mulyani Indrawati has revised rule of palm oil, crude palm oil (CPO) and its derivatives export levies which is going to come into effect from 1 June 2019.  Under the new regulation, the government will not collect levies from palm exporters when prices are below a threshold of U$570 per ton. In the interim, from 1 March to 31 May 2019, the government set levies on palm oil, CPO and its derivatives export at zero. The rule is laid down in the Finance Minister Regulation No.23/PMK.05/2019 on the second amendement to Finance Minister Regulation No 81/PMK.05/2018 concerning Tariff of Service by the Indonesian Oil Palm Plantation Fund Management Agency (BPDPKS). According to the new regulation which was officially signed on 6 March 2019, as of 1 June 2019 BPDPKS will not collect levies from palm oil exporters when prices are below a threshold of U$570 per ton, but will charge between US$5, US$10, US$15, US$ 20, US$25 once CPO prices are in a range of US$570-US$619 per ton. The levy will rise to US$20, US$30, US$40, US$50 when prices hit above US$619 per ton. It is also said that the revision on tariff of Service by BPDPKS had been discussed and reviewed by a team coordinated by Directorate General of Treasury at the Ministry of Finance. *** (Source:Katadata.co.id)