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JAKARTA - Minister of Finance (Menkeu) Sri Mulyani abolished the export levy on palm oil and its derivatives until August 31, 2022 through Minister of Finance Regulation (PMK) No. 15 of 2022.

The PMK is an amendment to PMK Number 103/PMK.05/2022 concerning Service Tariffs for the Public Service Agency of the Palm Oil Plantation Fund Management Agency (BPDPKS).

"Basically, PMK Number 15 of 2022 is to provide changes to the export levy tax rate for all palm products from fresh fruit bunches, oil palm, palm fruit, crude palm oil (CPO), palm oil, and used cooking oil," said Sri Mulyani in Badung, Bali, quoted from Antara, Sunday, July 17.

Thus, he explained that the PMK reduced the export levy tariff to zero percent or Rp.0 for all products related to CPO or palm oil.

Export levies are usually collected to become a source of funds for BPDPKS for price stabilization.

After August 31, 2022, which is September 1, 2022, Sri Mulyani said that her party would then apply progressive tariffs.

"This means that in this case the CPO price is low, the tariff will also be very low. Meanwhile, if the price goes up, the tariff will increase," he explained.

According to him, this step was taken so that the government through BPDPKS would get funding to carry out programs related to stabilizing biodiesel prices to cooking oil.

Even though it is busy hosting the G20 Presidency, the Indonesian government still pays attention to the domestic situation related to food and CPO because Indonesia is one of the largest palm oil producers in the world and looks at the condition of farmers, including oil palm farmers and the condition of the people who consume cooking oil.

"We take care of all these needs in a policy including export levies and seek a balance between these various objectives," said Sri Mulyani.


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