Crude Palm Oil Becomes Indonesia's Largest Export Product by Value

Export levies in foreign currency constitute a source of revenue from the palm oil sector that contributes to the country's foreign exchange reserves. The value of export levies and duties on palm oil varies depending on the product type. This is regulated in the Minister of Finance Regulation No. 57/PMK.05/2020 concerning the Service Tariff of the BPDPKS Public Service Agency of the Ministry of Finance.

Crude palm oil and crude palm kernel oil are the two commodities with the highest export levy value, namely US$55 per ton. Palm oil biodiesel, palm kernel, palm fruit, and palm kernel cake have an export value of US$25 per ton. Empty fruit bunches have the lowest export value, at US$15 per ton.

Unfortunately, this revenue does not contribute to increasing the income of palm oil-producing regions. Because, according to Minister of Finance Regulation No. 2/PMK.05/2007 concerning Amendments to Minister of Finance Regulation No. 99/PMK.06/2006 concerning the State Revenue Module, export levies are included in state revenue and are not included in the revenue-sharing scheme.