Export Tax Regulation

• Author: William A. Sullivan/Christian Teo Purwono & Partners
• Profession: Licensed Foreign Advocate in Indonesia as well as a Solicitor of the Supreme Court of New South Wales
• Pages: 213-218

CHAPTER 18

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 specific 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

refining 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.

213