Ministry Of Trade: Increased CPO Prices Affected By Vegetable Oil In China And The US

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Trade (Kemendag) said that the increase in the price of palm oil (CPO) in April 2024 was influenced by several factors, one of which was an increase in vegetable oil prices in China and the United States.

Director General of Foreign Trade of the Ministry of Trade Budi Santoso said the reference price (HR) for palm oil (CPO) for April 2024 was 857.62 US dollars per metric tonne, an increase of 58.72 US dollars or 7.3 percent compared to the previous month.

"The increase in HR CPO is influenced by the increase in vegetable oil prices in the People's Republic of China and the United States," Budi said in a statement in Jakarta, quoted from Antara, Saturday, March 30.

Budi said that the fluctuations in the rupiah exchange rate and Malaysian ringgit against the United States dollar contributed to the increase in palm oil prices.

In addition, the increase in demand for biodiesel and the decline in palm oil production in Indonesia have also affected prices.

Furthermore, currently, the price of palm oil has increased which is far from the threshold of US$680 per metric ton.

For this reason, referring to the current Minister of Finance Regulation, the government will impose an exit fee (BK) of palm oil amounting to 52 US dollars per metric ton and an export levy (PE) of 90 US dollars per metric ton for the April 2024 period.

The determination of HR for palm oil comes from the average price during the period 25 February-24 March 2024 on the CPO Exchange in Indonesia amounting to 830.85 US dollars per metric ton, the CPO Exchange in Malaysia amounted to 884.39 per metric ton, and the CPO Rotterdam Auction Market amounted to 971.60 per metric ton dollar.

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 a BK of 0 US dollars per metric ton with a brand determination as stated in the Decree of the Minister of Trade Number 417 of 2024 concerning the Refined, Bleached, and Deodorized (RBD) Palm Olein Branded and Packaging Weighted Netto 25 Kg.