Latest update! Indonesian tax and levies for palm kernel shell export 2019

Total Tax and Levies March 2019 =  USD 7/ MT ( $10 + $ 7 )

  • if CPO price is < $570 = $0/MT levy
  • if CPO price is  $570 – $619 = $5/MT levy
  • if CPO price is > $619 = $10/MT levy

Each country will have its own rules and regulations when it comes to exporting good out of their country, Indonesia is no exception. Below we will cover what and how the tax and levies are calculated for buying Indonesia Palm kernel shell. Basically there are 2 that we should know:

Badan pengelolaan dana perkebunan kelapa sawit (BPDPKS)

Previously, the Indonesian Oil Palm Estate Fund or known as BPDPKS has levy of USD 10/ MT which regulated by Regulation of the finance minister of the Republic of Indonesia number 81/PMK.05/2018 regarding service tariffs for public service agency managing the fund for oil palm plantations.

Indonesia’s Finance Minister Sri Mulyani Indrawati has signed a new regulation on amendment to regulation on tariff of service by the Indonesian Oil Palm Estate Fund (BPDPKS). The new regulation temporarily set levy on palm oil, Crude Palm Oil (CPO) and its derivatives export at zero as current CPO price is below US$ 570 per ton.

this new regulation set forth on the 4th of December 2018 under the Regulation of the finance minister of the Republic of Indonesia number 152/PMK.05/2018 which stated that the levy could be $0, $5, $10, depending on the international Crude Palm Oil price.

  • CPO price is < $570 = $0/MT levy
  • CPO price is  $570 – $619 = $5/MT levy
  • CPO price is > $619 = $10/MT levy

Customs tax by regulation of the Minister of Trade

The tax bracket for export duties on palm kernel shell has been determined in the regulation of the Indonesian republic finance minister No. 13 / PMK.010 / 2017 concerning the determination of export goods subject to export duties. For October 2018, the tax is in column 1, which is USD 7 / MT.

As you can see on the table above, there are several columns that have different tax rate. This export duty tax will be determined monthly through the stipulation of the trade minister on “Determination of export benchmark prices for agricultural and forestry products subject to export duties”. One of the example is:

We hope our brief explanation above can give you a good idea on how tax and levies are determined for exporting palm kernel shell in Indonesia. Should you need more info, please don’t hesitate to contact us at info@palmkernelshell.id