Export Tax Regulation

AuthorWilliam A. Sullivan/Christian Teo Purwono & Partners
ProfessionLicensed Foreign Advocate in Indonesia as well as a Solicitor of the Supreme Court of New South Wales
Export Tax Regulation
I. Executive Summary
1. Overview
1.1 The Export Tax on Export Goods Regulation (hereinafter referred to
as MoFR 75/2012) was issued with legal effect from May 16, 2012.
1.2 MoFR 75/2012 sets out how the newly introduced export tax on certain
unprocessed mineral products (Export Tax) will be calculated.
2. Approach
2.1 Mineral Products: At the moment, the Export Tax only applies to
those 65 specic unprocessed metal minerals and nonmetal minerals
that are set out in Attachment IV to MoFR 75/2012 (Certain Mineral
Products) and that are the subject of a domestic processing and
rening requirement commencing in 2014.
2.2 Calculation: MoFR 75/2012 provides for two alternative approaches
to setting and calculating the Export Tax on Certain Mineral Products,
being the ad valorem approach and the per unit approach.
2.3 The essential difference between the two approaches is that, under
the ad valorem approach, the total amount of Export Tax collected by
GoI varies with changes in the Export Price of the Certain Mineral
Product Export whereas, under the per unit approach, the total
amount of the Export Tax collected by GoI varies with changes in
the amount of Certain Mineral Product Export and without regard to
changes in the Export Price.
2.4 Key Elements of Export Tax Calculation: The two key elements of
the Export Tax are (i) the Tariff in the case of both the ad valorem
approach and the per unit approach and (b) the Export Price in the
case of the ad valorem approach only.

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