Jul

20

Revocation of Export Prohibition on Crude Palm Oil and its Derivatives in Indonesia

On June 8, 2022, the Ministry of Trade lifted the temporary export prohibition on Crude Palm Oil, Refined, Bleached and Deodorized Palm Oil, Refined, Bleached and Deodorized Palm Olein, and Used Cooking Oil (“CPO and its derivatives”) commodities through Minister of Trade Regulation No. 30 of 2022 in conjunction with the Minister of Trade Regulation No. 39 of 2022 (“MoTR 39/2022”), which creates a positive outlook for investment in Indonesia.

The prohibition on export of CPO and its derivatives, which had been in place since 27 April 2022, has now been lifted to optimize national economic growth through MoTR 39/2022. It is important for producers and exporters of CPO and its derivatives to observe that there are obligations to be fulfilled in the export procedures for CPO and its derivatives after the revocation of Regulation of the Minister of Trade No. 22 of 2022. The export of CPO and its derivatives are further regulated with the following provisions:

First, regulation in Indonesia states that to be able to export CPO and its derivatives, exporters are required to obtain an Export Approval. The issuance of an Export Approval is carried out by the Director General of Foreign Trade through an application submitted electronically through the Indonesia National Single Window (“SINSW”) System. After obtaining an Export Approval, exporters are required to submit reports on the realization of exports of CPO and its derivatives, which are stipulated in the Indonesian government regulation, that will be submitted monthly no later than the 15th of the following month through SINSW.

The next obligation is to fulfill the distribution of domestic commodity needs (“Domestic Market Obligation”) by showing:

  1. Evidence of the implementation of the Domestic Market Obligation of CPO with domestic sale prices to producers of bulk cooking oil in accordance with the provisions of laws and regulations;
  2. Evidence of the implementation of the Domestic Market Obligation for bulk cooking oil at domestic sale prices to retail logistics service business actors and buying CPO without using domestic sale prices in accordance with the provisions of laws and regulations; or
  3. Evidence of the implementation of Domestic Market Obligation for other producers, preceded by cooperation between exporters and producers implementing Domestic Market Obligations, submitted through SINSW in the form of electronic data elements, business registration numbers and company names.

If you, a prospective client, want to apply for a CPO Export Permit as explained above, Schinder Law Firm is one of many corporate law firms that have handled a lot of similar matters, with many experienced and professional civil lawyers and dispute lawyers who are experts in licensing matters, making Schinder Law Firm one of the top corporate law firms in Indonesia. Feel free to contact us at info@schinderlawfrim.com for further consultation.

Author: Suryani Lin