In June 2024, the Minister of Finance (“MOF“) issued an update on the regulation governing export duties through MOF Regulation No. 38 of 2024 on Determination of Exported Goods Subject to Export Duty and Export Duty Rates (“New Regulation“). The New Regulation replaces MOF Regulation No. 39/PMK.010/2022, as lastly amended by MOF Regulation No. 71 of 2023 (“Previous Regulation“).
The two main updates in the New Regulation pertains to the determination of export duties for processed metal mineral products and the extension of the export duties application period for processed metal mineral products. In terms of regulatory framework, the New Regulation supports the implementation of the Ministry of Energy and Mineral Resources (“MEMR“) Regulation No. 6 of 2024, which governs the construction of metal mineral refining facilities in Indonesia (“MEMR Regulation 6/2024“), by detailing the export duties provision for metal mineral products. Moreover, the New Regulation complements MEMR Regulation 6/2024, which allows businesses to export processed metal mineral products using certain HS Codes (Harmonised System) only if their refining facilities have reached the commissioning stage as of 31 May 2024.
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