Impact Of Abolition Of CPO Export Tariffs, Palm Oil Fund Management Agency Loses IDR 16.8 Trillion In Revenue

Illustration. (Photo: Doc. Antara)

JAKARTA - The Palm Oil Plantation Fund Management Agency (BPDPKS) has the potential to lose revenue from the elimination of exports of crude palm oil (CPO) and its derivatives. Its value can reach more than Rp. 16 trillion.

As is known, the policy of eliminating export levies is contained in Minister of Finance Regulation (PMK) Number 115 of 2022 which is an amendment to PMK Number 103 of 2022 concerning Service Tariffs for Palm Oil Public Service Agencies. This regulation has been in effect from 15 July to 31 August.

The Acting Director of Partnership for BPDPKS Kabul Wijayanto said that the funds received by BPDPKS were reduced compared to when the export tax was still referring to PMK Number 103 of 2022.

"We have carried out the calculation process in approximately 1.5 months. This Rp11.5 to Rp. 16.8 trillion potential that should have been received by BPDPKS has been lost," he said quoted Tuesday, July 26.

If referring to the regulation of PMK No. 103 of 2022, the maximum export levy on CPO is 200 US dollars for CPO sales above 1,500 dollars per ton. Meanwhile, the maximum export levy for RBD Palm Olein is US$160 per tonne and for Used Cooking Oil is 35 per tonne.

"In early September 2022, the tariff will be returned to a maximum of 240 US dollars per metric ton for the highest tariff using a reference price basis from the Ministry of Trade above 1,500 US dollars per metric ton. That will be used," he said.

Despite the reduced levies, Kabul explained that BPDPKS remains committed to implementing mandated programs in both the upstream and downstream sectors. Such as community oil palm rejuvenation program, human resource development program, facilities and infrastructure program, research and development program.

Not only that, BPDPKS is also committed to funding for the distribution of packaged cooking oil and for the distribution of bulk cooking oil.

"We have allocated approximately Rp. 1 trillion for packaged cooking oil, while for bulk cooking oil, we have allocated approximately Rp. 1.87 trillion for this allocation," he explained.