REGULATION ON GOODS THAT ARE SUBJECT TO EXPORT DUTIES AND THE EXPORT DUTIES TARIFF
Two regulations were issued on 16 May 2012 by the Indonesian government, respectively:
Regulation of the Minister of Finance No. 75/PMK.011/2012 regarding Determination of Goods Subject to Export Tax and Tariff of the Export Tax.
This regulation shows the government’s continued efforts towards increasing the value of Indonesia’s exports, and to encourage exporters to process raw material within Indonesia.
As a general rule, the Regulation stipulates in Article 2 that export goods may be subject to export duties. Under Article 3, the goods that are subject to export duties are leathers and timbers; cacao beans, crude palm oils and their derivatives, and mineral ore. Article 4 and 5 of the Regulation contains stipulations regarding the export duties tariff and the calculation manner, and these are summed up in the Regulation’s Appendix.
The export price and export duty tariff of mixed products that originate from crude palm oil (CPO) are specially regulated in Article 6.
Regulation of the Minister of Energy and Mineral Resources No. 11 of 2012 (Reg. 11/2012), which amends the Obligation to Refine Minerals as imposed under Regulation No. 7 of 2012 (Reg. 7/2012) regarding Increasing Minerals’ Added Value Through Mineral Processing and Refining Activities
Reg. 11/2012 amends the provisions of Regulation 7/2012 which impose the requirement to refine certain raw minerals in the country. This regulation basically lightens the previous ban for miners from exporting raw materials, ore and rocks. It allows holders of the Production Operation License (IUP Operasi Produksi) and the People's Mining License (IPR) to sell their minerals abroad provided they first obtain the recommendation of the respective Minister. The requirements for the recommendation are, among others:
Payment of all dues owed to the State;
Submission of a working plan for mineral processing and purifying in the country; and
Signing of an integrity pact.
Regulation 11/2012 has been effective since 21 May 2012. (by: Hamud M. Balfas).