Ministry Of Trade: CPO Reference Prices Increase The Effect Of Increased Demand From India, Europe, And North America

Illustration. (Photo: Doc. Antara)

The Ministry of Trade (Kemendag) said the increase in reference prices (HR) for palm oil (crude palm oil/CPO) was influenced by increased demand from India, Europe, and North America.

The Director General of Foreign Trade of the Ministry of Trade, Isy Karim, said that the HR CPO for the determination of exit duties (BK) and the tariff of the Public Service Agency for the Palm Oil Plantation Fund Management Agency (BLU BPDP-KS) was recorded at 1,071.67 US dollars per metric ton (MT) in the period December 2024.

The HR value, which is also an export levy (PE), increased by 109.70 US dollars or 11.40 percent from the November 2024 period which was recorded at 961.97 US dollars per MT.

"The increase in HR CPO is influenced by increased demand, especially from India as well as regions of Europe and North America, which are not offset by an increase in global production. In addition, there has been a decline in production, a temporary ban on CPO exports from Thailand, an increase in domestic consumption in Malaysia, as well as a weakening of the ringgit currency which has also raised HR CPO," said Isy through a statement in Jakarta, quoted from Antara, Wednesday, December 4.

This determination is stated in the Decree of the Minister of Trade Number 1617 of 2024 concerning Reference Prices for Crude Palm Oil Subjected to Outer Customs and Public Service Tariffs for the Palm Oil Plantation Fund Management Agency for the Period 1-31 December 2024.

Meanwhile, the determination of the BK CPO for the period December 2024 refers to the 9 Attachment Letter C of the Minister of Finance Regulation (PMK) Number 38 of 2024 which amounted to 178 US dollars per MT.

Meanwhile, the CPO export levy for the period 1-31 December 2024 refers to Attachment I PMK Number 62 of 2024 amounting to 7.5 percent of HR CPO for the period December 2024, which is 80.3752 US dollars per MT.

Isy explained that the determination of the HR CPO was obtained from the average price for the period 25 October-24 November 2024 on the CPO Exchange in Indonesia amounting to 1,019.97 US dollars per MT, the CPO Exchange in Malaysia amounting to 1,123.37 US dollars per MT, and the Rotterdam CPO Auction Market amounting to 1,279.33 US dollars per MT.

In addition, continued Isy, cooking oil (refined, bleached, and deodorized / RBD palm olein) in branded packages and packaged with a net weight of 25 kg was charged by BK with 48 US dollars per MT.

For the determination of the brand, it is regulated in the Decree of the Minister of Trade Number 1618 of 2024 concerning the List of Refined, Bleached, and Deodorized (RBD) Palm Olein in Branded Packaging and Packed with a Netto Weight of 25 Kg.