Agricultural and forestry products play an important role in sustainable economic growth and national development. Domestically, these products are used to meet daily household and manufacturing needs. CPO is used in food, cosmetic, chemical, and farm industry. Meanwhile, cocoa is the essential ingredient for making food and beverages. Exports of agricultural and forestry products from Indonesia will increase state income through the imposition of export or export duties.
In order to maintain the agricultural and forestry sector’s contribution to state revenues and to fulfill domestic needs, government has reorganized the procedure for setting export benchmark prices and reference prices for agricultural and forestry products subject to export duties. The latest changes related to reference prices and export duty rates are regulated in Minister of Finance Regulation Number 123/PMK.010/2022. This regulation comes into force on August 9, 2022 and is listed in Appendix C, which is an integral part of this regulation.
Changes in provision were made in anticipation of price changes in the international market. In addition, in relation to the downstream policy of agricultural and forestry products, as regulated in the Regulation of the Minister of Trade Number 46 Year 2022, it is necessary to adjust the reference price range due to changes in the reference price calculation mechanism.
In general, the reference price for palm oil, CPO, and their derivative products is set to be US$70 per ton lower for each range compared to the previous provisions. This table gives the price range differences between Minister of Finance Number 98/PMK.010/2022 and Minister of Finance Number 123/PMK.010/2022.
| Description in the Appendix Letter C | Reference Price Range Minister of Finance Number 98/PMK.010/2022 | Reference Price Range Minister of Finance Number 123/PMK.010/2022 |
| Column 1 | up to US$750.00 per ton | up to US$680.00 per ton |
| Column 2 | > US$750.00 per ton to US$800.00 per ton | > US$680.00 per ton to US$730.00 per ton |
| Column 3 | > US$800.00 per ton to US$850.00 per ton | > US$730.00 per ton to US$780.00 per ton |
| Column 4 | > US$850.00 per ton to US$900.00 per ton | > US$780.00 per ton to US$830.00 per ton |
| Column 5 | > US$900.00 per ton to USD950.00 per ton | > US$830.00 per ton to US$880.00 per ton |
| Column 6 | > US$950.00 per ton to US$1,000.00 per ton | > US$880.00 per ton to US$930.00 per ton |
| Column 7 | > US$1,000.00 per ton to US$1,050.00 per ton | > US$930.00 per ton to US$980.00 per ton |
| Column 8 | > US$1,050.00 per ton to US$1,100.00 per ton | > US$980.00 per ton to US$1,030.00 per ton |
| Column 9 | > US$1,100.00 per ton to US$1,150.00 per ton | > US$1,030.00 per ton to US$1,080.00 per ton |
| Column 10 | > US$1,150.00 per ton to US$1,200.00 per ton | > US$1,080.00 per ton to US$1,130.00 per ton |
| Column 11 | > US$,200.00 per ton to US$1,250.00 per ton | > US$1,130.00 per ton to US$1,180.00 per ton |
| Column 12 | > US$1,250.00 per ton to US$1,300.00 per ton | > US$1,180.00 per ton to US$1,230.00 per ton |
| Column 13 | > US$1,300.00 per ton to US$1,350.00 per ton | > US$1,230.00 per ton to US$1,280.00 per ton |
| Column 14 | > US$1,350.00 per ton to US$1,400.00 per ton | > US$1,280.00 per ton to US$1,330.00 per ton |
| Column 15 | > US$1,400.00 per ton to US$1,450.00 per ton | > US$1,330.00 per ton to US$1,380.00 per ton |
| Column 16 | > US$1,450.00 per ton to US$1,500.00 per ton | > US$1,380.00 per ton to US$1,430.00 per ton |
| Column 17 | > US$1,500.00 per ton | > US$1,430.00 per ton |
Government also made changes to several export duty rates, including increasing the export duty rate by 2 US$/MT for RDB Palm Stearin Column 12, from US$106/MT to US$108/MT, and lowering some export duty rates for RDB Palm Olein material in branded packaging with a net weight of < 25 kg, with the following details:
- Column number 11, decrease from US$74/MT to US$63/MT
- Column number 12, decrease from US$75/MT to US$65/MT
- Column number 13, decrease from US$74/MT to US$68/MT
- Column number 14, decrease from US$75/MT to US$71/MT
- Column number 15, decrease from US$76/MT to US$73/MT
What is Reference Price?
Based on Article 1 Number 5 Minister of Finance Regulation Number 38/PMK.010/2022 as last modified with Minister of Finance Regulation Number 123/PMK.010/2022, reference price is an international average price and/or average price of certain domestic commodity market for the determination of export duty rate. Reference price is periodically determined by the minister who carries out government duties and functions in the trade sector after coordinating with the minister or head of non-ministerial government agency or head of the relevant technical agency. Reference price is determined by the Minister who carries out government affairs in the trade sector by referring to several sources.
1. Cocoa Bean Reference Price Guide
There are 2 (two) sources of reference prices for cocoa beans, namely:
- Average price of Cocoa New York Mercantile Exchange (NYMEX) Cost Insurance Freight (CIF); and
- Settlement price for the nearest available month of delivery for source exchange reference.
2. Crude Palm Oil (CPO) Reference Price Guidelines
There are 3 (three) sources of reference prices for CPO, namely:
- CPO’s Free on Board (FOB) price on Indonesia stock exchange, which is based on the Indonesian stock exchange's closing price for the nearest month of delivery minus insurance and freight costs;
- CPO’s Free on Board (FOB) price on Malaysia stock exchange, which is calculated using the settlement price for the nearest available month of delivery minus insurance and freight costs;
- Rotterdam Cost Insurance Freight (CIF), which is based on the spot price for the nearest available month of delivery minus insurance and freight costs;
If there is a difference in the average price for each of price sources of less than or equal to US$40.00, the calculation of reference price uses the weighted average price with 60% of Indonesia stock exchange, 20% of Malaysia stock exchange and 20% of Rotterdam stock exchange. If it is greater than US$40.00, reference price calculation uses 2 (two) price sources, namely median and closest to the median price source.
