Jakarta, CNBC Indonesia – The Director General of Customs and Excise at the Ministry of Finance (Kemenkeu) Askolani opened his voice regarding PT Pertamina (Persero) requesting a customs exemption for ethanol products. It is planned that the ethanol product will be used by Pertamina as a mixture for RON 90 or Pertalite fuel oil.
As is well known, Pertamina is currently studying changes to RON 90 or Pertalite fuel to RON 92 or Pertamax Green 92. This is done by mixing 7% ethanol or E7 into Pertalite.
Therefore, Pertamina asked for a customs exemption for the ethanol product. As a step to support more environmentally friendly fuel products.
Regarding this matter, Director General of Customs and Excise Askolani stated that there had been no discussion regarding Pertamina’s request. “There has been no discussion of that, so it’s not that there is no room (exemption of ethanol customs). We haven’t discussed it yet, we don’t know the form yet,” said Askolani, Thursday (31/9/2023).
Main Director of Pertamina, Nicke Widyawati, said that the plan to change Pertalite specifications to Pertamax Green 92 which uses ethanol containing alcohol is still subject to duties and excise.
He stated that the customs duty imposed on ethanol itself is IDR 20,000 per liter.
“So one thing today is why we can say we haven’t thought about profitability because of the implementation of a customs duty of Rp. 20,000 because this is still considered a division of alcohol, alcohol is subject to a duty, right? Because this is not used for alcohol but for energy,” he explained at the DPR RI Commission VII Hearing, Jakarta, Wednesday (30/8/2023).
Currently, Nicke said that the duty also applies to products currently launched by Pertamina, namely Pertamax Green 95 with an ethanol mixture of 8%.
That way, Nicke asked for support from Commission VII DPR RI in order to be able to free ethanol which is counted as alcohol from the imposition of duties and excise. “So we ask for support so that we can get excise duty exemption, because the benefits are also very large,” said Nicke.
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