CPO Reference Prices For Export Outages And Features Rise

Palm Oil Illustration (Photo: Doc. Antara)

JAKARTA - The CPO Reference Price for the production of palm oil (CPO) for export duties (BK) and export levies (PE) for the period 1-15 March 2023 increased to 889.77 per MT US dollar.

HR CPO for BK and the tariff for the public service agency of the Palm Oil Plantation Fund Management Agency (BLU BPDP-KS) refers to the current PMK, so the government imposed a BK CPO of 74/MT US dollars and a CPO Export Levy of 95/MT US dollars for the period 1-15 March 2023.

"Currently HR CPO has increased and has again moved away from a threshold of 680 per MT US dollars," said Director General of Foreign Trade of the Ministry of Trade Budi Santoso quoting Antara, Wednesday, March 1.

This value increased by 9.74 US dollars or 1.11 percent of HR CPO for the period 16 '28 February 2023. The determination of the HR CPO as stated in the Decree of the Minister of Trade Number 542 of 2023 concerning HR CPO Worn by the BK and the Public Service Tariff of the Palm Oil Plantation Fund Management Agency.

In addition, cooking oil (refined, bleached, and deodorized/RBD palm olein) in branded and packaged with a net weight of 25 kg is subject to BK USD 0/MT with a brand determination as stated in the Decree of the Minister of Trade Number 543 of 2023 concerning the List of Refined, Bleached, And Deodorized (RBD) Palm Olein Brands in Branded and Packaging Weighted Netto 25 KG.

BK CPO for the period 1-15 March 2023 refers to the Number 6 Attachment Letter C of the Minister of Finance Regulation Number 123/PMK.010/2022 amounting to 74/MT US dollars.

Meanwhile, the CPO Export Charge for the period 1-15 March 2023 refers to the Attachment Letter C of the Minister of Finance Regulation Number 154/PMK.05/2022 amounting to 95/MT US dollars.

The increase in HR CPO was influenced by several factors, including a decline in world supply due to changes in Indonesia's mandatory biodiesel policy which was originally B30 to B35 and crisis conditions in Argentina as one of the world's palm oil producing countries.

In addition, there was an increase in the price of other vegetable oils, especially soybeans and an increase in the Malaysian Ringgit exchange rate against the United States dollar.

Meanwhile, the HR cocoa beans for the March 2023 period was set at 2,642.12/MT US dollars, an increase of 28.59 US dollars or 1.09 percent from the previous month.

This has an impact on increasing the price of cocoa beans (HPE) in March 2023 to 2,351/MT US dollars, up 27.90 US dollars or 1.20 percent from the previous period.

This price increase did not have an impact on BK cocoa beans, which was still 5 percent according to Kolom 2 Attachment Letter B in the Minister of Finance Regulation Number 123/PMK.010/2022.

The increase in HPE and cocoa beans was influenced by an increase in cocoa demand, while supply or supply of cocoa decreased due to problems in the distribution of pesticides and fertilizers as a result of the Russian war with Ukraine. For skin products, HPE has not changed from the previous month.

Wood products have increased HPE, including in veneers from forest plants and wood sheets for packaging boxes (wooden sheet for packing boxes) from forest plants, which increased 50/m3 US dollars from the previous month.

Wood products in pieces or denominations (wood in chips or particles) and wood coins (chipwood) increased 5/m3 US dollars from the previous month.

In addition, processed wood products of the type of Merbau and other types of ebony have increased by 100 US dollars from the previous month and processed forest wood from acacia, balsa, eucalyptus, and cascade types increased by 50/m3 US dollars.

BK for skin products and wood products as stated in Attachment Letter A of the Minister of Finance Regulation Number 123/PMK.010/2022. Determination of HPE for cocoa beans, HPE for skin products, and HPE for wood products is listed in the Decree of the Minister of Trade Number 541 of 2023 concerning Export and HR Patokan Prices for Agricultural and Forestry Products Worn by BK.