Demand is Weak, August CPO Reference Price Drops
JAKARTA - The Ministry of Trade (Kemendag) has set the reference price (HR) for crude palm oil (crude palm oil/CPO) for the determination of export duties (BK) and export levies (PE) for the period 1-31 August 2026 at 996.52 US dollars per metric ton (MT).
Director General of Foreign Trade at the Ministry of Trade Tommy Andana said that the HR value decreased by 4.38 US dollars or 0.44 percent compared to the HR CPO period of 1-31 July 2026, which was 1,000.90 per MT.
In line with the decline in HR, the CPO BK for the period 1-31 August 2026 was set at 148 per MT.
"The decline in HR CPO in the August 2026 period was influenced by the weakening of global demand, especially from India as the main CPO importer, as well as the decline in world crude oil prices," said Tommy, quoting Antara.
This determination is in accordance with Column Number 8 of Annex Letter C of the Minister of Finance Regulation (PMK) Number 38 of 2024 as amended by PMK Number 68 of 2025.
Meanwhile, the PE CPO tariff refers to Letter A of PMK Number 69 of 2025 as amended by PMK Number 9 of 2026, namely 12.5 percent of HR CPO or equivalent to 124.56 US dollars per MT.
The determination of the HR CPO is sourced from the average price during the period from June 20 to July 19, 2026, namely 892.96 US dollars per MT on the Indonesian CPO Exchange, 1,100.08 US dollars per MT on the Malaysian CPO Exchange, and 1,509.09 US dollars per MT at the Rotterdam CPO port price.
Therefore, the determination of the HR CPO for the period 1-31 August 2026 refers to the average price of the Malaysian CPO Exchange and the Indonesian CPO Exchange, so it is set at 996.52 US dollars per MT.
In addition to CPO, refined, bleached, and deodorized (RBD) palm olein cooking oil products in branded packaging with a net of 25 kilograms are subject to a BK of 33 US dollars per MT.
The determination refers to the Minister of Trade (Kepmendag) Decree Number 1668 of 2026 concerning the List of Refined, Bleached, and Deodorized (RBD) Palm Olein Brands in Branded and Packed with a Net Weight of 25 Kilograms at Most.