Government Guyur Palm Oil Industry IDR 20.8 Trillion In 2023

Palm Oil Industry (photo: Antara)

EAST BELITUNG - The government through the state budget (APBN) provides fiscal support of IDR 20.8 trillion to the oil palm plantation sector in Indonesia in 2023.

The funds collected through the Palm Oil Plantation Fund Management Agency (BPDPKS) were used for various strategic programs. One of them is biodiesel incentives of IDR 18.5 trillion. Then, for the people's palm oil rejuvenation program (PSR) worth IDR 1.7 trillion, research worth IDR 1 billion, and other programs of IDR 5 billion.

PKPN Intermediate Policy Analyst Fiscal Policy Agency, Nursidik Istiawan, said the government was trying to generate state levy revenues which could then be returned to the industry players.

"Through rejuvenation, promotion, research, facilities, feelings, and development of human resources and several other things," he said at the Palm Oil Contribution Press Tour for the State Budget and the Economy, Wednesday, August 28.

Nursidik said the government also provides entry duties exemption facilities for machinery and equipment imported for industrial development or development in the context of investment.

The release is valid for two years, and can be extended to four years for companies that use domestically produced machines with a minimum value of 30 percent of the total engine used. This import duty exemption also includes raw materials for production.

In addition, the import duty exemption facility also includes various sectors of the service industry, tourism, transportation, health services, mining, construction, telecommunications, and port.

"The release of import duties on the import of goods for the construction of investment in the context of investment using PMK 176 where the exemption of import duties is given to industries that have just been built in the form of factory construction," he said.

Nursidik said the government also provides convenience for export-oriented industry players. This facility is provided through the Ease of Import for Export Destinations (KITE) in accordance with the Regulation of the Minister of Finance No.160/PMK.04/2018.

The facility allows companies to import goods from abroad or enter goods from Bonded Areas (KB), Bonded Logistics Centers (PLB), and Special Economic Zones (KEK) without being subject to Import Duty, Value Added Tax (VAT), and Sales Tax on Luxury Goods (PPnBM).

Where business actors who use the KITE facility are required to export no later than 12 months after import or according to the period of release given.

To take advantage of this facility, the company must place a minimum guarantee of the value of Import Duty and taxes that are not collected. The activities that benefit from this facility include processing, assembly, and installation processes.

After the process is complete, the production goods must be exported, and the company is required to submit an accountability report no later than one month after the end of the release period.