Ministry Of Trade Sets CPO Reference Prices To Strengthen 2.42 Percent

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Trade (Kemendag) has set a reference price (HR) for crude palm oil (CPO) for the period 1-31 August 2024 amounting to 820.11 US dollars per MT or an increase of 2.42 percent from the previous month.

Director General of Foreign Trade of the Ministry of Trade Budi Santoso said that currently HR CPO has increased away from a threshold of 680 US dollars per MT.

"For this reason, referring to the current Minister of Finance Regulation (PMK), the government imposed a CPO exit fee of 33 US dollars per MT and a CPO export levy of 85 US dollars per MT for the period 1-31 August 2024," Budi said through a statement in Jakarta, quoted from Antara, Friday 2 August.

Budi said the increase in HR CPO was influenced by an increase in demand, especially from India, which was not offset by an increase in production, an increase in the price of other vegetable oils, and the price of world crude oils.

The determination of the BK CPO for the period 1-31 August 2024 refers to the column number 4 Attachment Letter C PMK Number 38 of 2024 amounting to 33 US dollars per MT. Meanwhile, the CPO export levy for the period 1-31 August 2024 refers to Attachment Letter C PMK Number 103/PMK.05/2022 jo.154/PMK.05/2022 amounting to 85 US dollars per MT.

The source for the determination of HR CPO comes from the average price during the period from June 25 to July 24, 2024 on the CPO Exchange in Indonesia amounting to US $ 786.00 per MT, the CPO Exchange in Malaysia $ 854.22 per MT, and the Rotterdam CPO Auction Market of 960.62 US dollars per MT.

Based on Permendag Number 46 of 2022, if there is an average price difference in three sources, the price is more than US$40, then the calculation of HR CPO uses an average of two sources of price that become median and the closest source of price from the median, namely the CPO exchange in Malaysia and the CPO exchange in Indonesia.

In accordance with these calculations, HR CPO can be determined at 820.11 US dollars per MT.