- The Minister of Finance (“Minister”) has issued Regulation No. 152/PMK.05/2018 (“Regulation 152/2018”), which is an amendment to Regulation of the Minister No. 81/PMK.05/2018 on Service Tariffs for the Palm-Oil Plantation Fund Management Agency as a Public Service Agency at the Ministry of Finance.
- The highlight of Regulation 152/2018 is the monthly evaluation of any imposition of tariffs, as implemented by the Public Services Agency (“BLU”), the Palm-Oil Plantation Fund Management Agency, the Ministry of Trade, the Minister of Industry or the Minister of Energy and Mineral Resources. The results of such evaluations will become the basis for proposals of new services tariffs which will subsequently be submitted to the Minister.
- In addition, Regulation 152/2018 also determines that the levy tariff shall be based on the maximum price of crude palm oil (“CPO”), which should be in accordance with the reference price set by the Minister of Trade.
- However, the Palm-Oil Farmers Union (“SPKS”) is claiming that Regulation 152/2018 encompasses a number of problematic provisions, specifically: 1) The imposition of a very high quote price which will result in low prices for fresh fruit bunches (tandan buah segar) in the future; 2) An imbalance between the distribution and utilization of levied funds, and the contributions and impacts which will be experienced by farmers; and 3) The small allocation which has been set aside for replanting purposes in comparison with biodiesel subsidies.
- For more on this story, see Hukumonline: “Menurut Aturan Terbaru, Pungutan Ekspor CPO Dievaluasi Setiap Bulan”.
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