November CPO Price Increase Influenced By Requests From India And China

JAKARTA - The Ministry of Trade (Kemendag) said the increase in the price of palm oil (CPO) was influenced by increased demand, especially from India and China.

"This increase in CPO is influenced by increased demand, especially from India and China. However, global production has decreased due to a long dry season. In addition, the increase in world crude oil prices and Malaysian Exit Customs rates which have been in effect since October 1, 2024, has also raised the CPO reference price," said the Director General of Foreign Trade at the Ministry of Trade. Isy Karim reported by ANTARA, Friday, November 1.

The CPO Reference Price for the November 2024 period was set at US$961.96 per metric ton (MT).

This value increased by 68.32 US dollars from the previous month amounting to 893.64 US dollars per MT.

The determination is stated in the Decree of the Minister of Trade Number 1532 of 2024 concerning CPO Reference Prices Subjected to Exit Duty and Public Service Tariffs of the Palm Oil Plantation Fund Management Agency.

Meanwhile, the determination of CPO's exit duties (BK) in November 2024 refers to the Number 7 Attachment Letter C of the Minister of Finance Regulation (PMK) Number 38 of 2024 amounting to 124 US dollars per MT.

Meanwhile, the determination of the CPO export levy (PE) refers to attachment I PMK Number 62 of 2024 amounting to 7.5 percent, amounting to 72.1475 US dollars per MT.

"Currently, HR CPO has increased away from a threshold of 680 US dollars per MT. For this reason, referring to the prevailing PMK, the government imposed a BK CPO of 124 US dollars per MT and a PE CPO of 7.5 percent from HR CPO November 2024, which amounted to 72.1475 US dollars per MT," said Isy.

Furthermore, cooking oil (refined, bleached, and deodorized/RBD palm olein) in branded packages and packaged with a net weight of 25 kilograms is subject to BK of 31 US dollars per MT.

The designation of the brand is stated in the Decree of the Minister of Trade (Kepmendag) Number 1533 of 2024 concerning the List of Refined, Bleached, and Deodorized (RBD) Palm Olein Branded Packaging and Packed with a Netto Weight of 25 kilograms.