May 2024 CPO Price Set at USD877.28/MT, Jumps 2%

JAKARTA – The government sets a reference price (HR) for palm oil (CPO) commodities for determining Export Duty (BK) and rates for the Public Service Agency for the Palm Oil Plantation Fund Management Agency (BLU BPD-PKS) or commonly called Export Levy (PE). ) for the period May 2024 is USD 877.28/MT.

This value increased by USD 19.67 or 2.29 percent from the April 2024 period which was recorded at USD 857.62/MT.

“Currently, HR CPO has increased away from the threshold of USD 680/MT. For this reason, referring to the PMK currently in effect, the government is imposing a CPO Export Duty of USD 52/MT and a CPO Export Levy of USD 90/MT for the period May 2024,” said the Director General of Foreign Trade at the Ministry of Trade, Budi Santoso, in an official statement, Thursday (2/5/2024).

This determination is contained in the Decree of the Minister of Trade Number 576 of 2024 concerning Reference Prices for Crude Palm Oil Subject to Export Duty and BLU BPD-PKS Service Tariffs for the May 2024 Period.

Determination of HR CPO comes from the average price during the period 25 March-24 April 2024 on the CPO Exchange in Indonesia at USD 847.02/MT, the CPO Exchange in Malaysia at USD 907.55/MT, and the Rotterdam CPO Auction Market at USD 1,004 .75/MT.

Based on Minister of Trade Regulation Number 46 of 2022, if there is a difference in average prices across three price sources of more than USD 40, then the HR CPO calculation uses the average of the two price sources which are the median and the price source closest to the median. Through these provisions, HR is sourced from the CPO Exchange in Malaysia and the CPO Exchange in Indonesia. In accordance with these calculations, HR CPO is set at USD 877.28/MT.

In addition, cooking oil (refined, bleached, and deodorized/RBD palm olein) in branded packaging and packaged with a net weight of ≤ 25 kg is subject to Export Duty (BK) USD 0/MT with brand designation as stated in Decree of the Minister of Trade Number 577 of 2024 regarding List of Brands of Refined, Bleached, and Deodorized (RBD) Palm Olein in Branded Packaging and Packaged with Net Weight ≤ 25 Kg.

BK CPO for the period May 2024 refers to Column Number 5 of Attachment Letter C to Regulation of the Minister of Finance Number 39/PMK/0.10/2022 jo. Number 71 of 2023 amounting to USD 52/MT. Meanwhile,
CPO Export Levy for the period May 2024 refers to Attachment Letter C to Regulation of the Minister of Finance Number 103/PMK.05/2022 jo. 154/PMK.05/2022 amounting to USD 90/MT.

The increase in CPO HR was influenced by an increase in demand as an anticipatory step for Eid al-Fitr, while palm oil production in Malaysia and Indonesia decreased due to weather anomalies and the development of conflicts between Ukraine and Russia, as well as Iran and Israel which
has an impact on price fluctuations of crude oil and other vegetable oils.