On 23 May 2022, the Government of Indonesia officially lifted the ban on exports of CPO and its derivatives through the promulgation of the Minister of Trade ("MoT") Regulation No. 30 of 2022 concerning Policies on Exports of Crude Palm Oil; Refined, Bleached, and Deodorized Palm Oil; Refined, Bleached, and Deodorized Palm Olein; and Used Cooking Oil as amended by MoT Regulation No. 39 of 2022 ("MoT Reg. 30/2022").
MoT Reg. 30/2022 was issued as a response to the statement of President of Indonesia Joko Widodo on 19 May 2022 after careful deliberations on the current condition in the palm oil industry related to the supply and pricing of cooking oils, and the workers' welfare. It is also a response to the previously issued MoT Regulation No. 22 of 2022, regulating the temporary ban of CPO and its derivatives exports.
In this article, we provide a brief summary of provisions on exports of CPO and its derivatives based on MoT Reg. 30/2022, particularly the: (i) Key Definitions; (ii) Requirements for Exporters; (iii) Export Approval; (iv) Validity Period (v) Obligations of Holders of Export Approval; and (vi) Concluding Remarks.
Key Definitions
MoT Reg. 30/2022 stipulates 3 (three) key definitions regarding exports of CPO and its derivatives, namely:
- Export Approval (Persetujuan Ekspor or "PE"): A PE is a license to export Crude Palm Oil; Refined, Bleached, and Deodorized Palm Oil; Refined, Bleached, and Deodorized Palm Olein; and Used Cooking Oil.
- Indonesia's National Single Window System ("SINSW"): SINSW is an electronic system that integrates the systems and/or information relating to the process of customs, quarantine, licensing, port/airport, and other documents handling related to the exports and/or imports, which secures the data and information, and integrates the automatic flow and process among the internal systems.
- INATRADE system ("INATRADE"): an integrated electronic system for trading managed by MoT. It is responsible for the issuance of PE after its approval process in SINSW.
Requirements for CPO Exporters
Please note that, based on Article 3 paragraph (1) of MoT Reg. 30/2022, exports of CPO and its derivatives can be conducted by Exporters who have obtained a PE issued by MoT. Furthermore, paragraph (2) of the same article requires the exporters to fulfill the following requirements:
- The exporters have the proof of distribution of their CPO under the domestic market requirement with domestic price obligation (Domestic Market Obligation or DMO scheme) to producers of bulk cooking oil according to the laws and regulations;
- They have the proof of distribution of their CPO under DMO that contribute to the bulk cooking oil production to business actors in retail logistics services. These exporters must have the proof that they buy the CPO and its derivatives without using the domestic sale price in accordance with the laws and regulations; or
- The exporters have the proof of distribution of CPO and its derivatives owned by other producers under DMO, preceded by the proof of their cooperation with these producers, submitted through SINSW in electronic data in the form of business registration numbers and company names.
Export Approval
To obtain PE, an Exporter must submit an electronic application with an access right to MoT through SINSW. As mentioned in Article 4 paragraph (3) of MoT Reg. 30/2022, the access right can be obtained by registering through SINSW and submitting the scanned copies of the following documents:
- taxpayer identification number ("NPWP") or citizen identification number ("NIK") (for Exporters who are individuals);
- NPWP for Exporters of state-owned enterprises or foundations; or
- business registration number ("NIB") and NPWP, for Exporters of cooperatives or business entities.
However, if the above documents are electronically available at MoT or non-ministerial institutions integrated to SINSW, the Exporter does not need to upload the documents.
After registering through SINSW, the Exporter must fulfill its distribution realization data. If the registration is approved, the PE will be issued through the INATRADE system.
Based on Article 6 paragraph (3) of MoT Reg. 30/2022, the issued PE contains data or information of:
- business identification number ("NIB") and identity of the Exporter ("NIK");
- postal tariff or harmonized system;
- type or description of Goods;
- quantity and unit of Goods;
- loading port;
- destination country;
- effective date; and
- expiry date.
("PE Data")
Amendment to PE Data
In the event of any changes to PE Data, the Exporter is required to submit an amendment application in no later than 30 (thirty) days after the date of such change. The relevant changes of PE Data that need to be reported include:
- Exporter's identity;
- postal tariff or harmonized system
- type or description of Goods;
- quantity and unit of Goods;
- loading port; and/or
- country of destination.
(Article 8 paragraph (2) of MoT Reg. 30/2022)
Validity Period of PE
A PE is valid for 6 (six) months and issued by the Director General of Foreign Trading on behalf of MoT (Article 8 paragraph (1) of MoT Reg. 30/2022)
Obligations of PE Holders
Exporters holding a PE are required to submit electronic reports on their realized exports of CPO and its derivatives to MoT. The report is submitted through SINSW every month, no later than on the 15th of the following month.
The realization report contains the following information:
- type or description of Goods;
- postal tariff or harmonized system;
- volume of Goods;
- value of Goods;
- loading port;
- country of destination; and
- number and date of notification of Export of Goods
Concluding Remarks:
Given the temporary ban on exports of CPO and its derivatives was lifted, the Government of Indonesia has issued the export mechanism under MoT Reg. 30/2022. This development would hopefully be the optimal steps towards economic progress, especially in the CPO industry, and stabilized prices of CPO-based products in Indonesia and abroad.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
