JAKARTA - The Ministry of Trade (Kemendag) said the decline in the reference price (HR) of crude palm oil (crude palm oil/CPO) for the period of January 2026 was due to increased production, especially from Malaysia, but was not followed by an increase in demand.
In an official statement from the Ministry of Trade in Jakarta, quoted by Antara, Thursday, January 1, the HR CPO for the determination of export duties (BK) and export levies (PE), the January 2026 period is 915.64 US dollars per metric ton (MT).
This value decreased by 10.51 US dollars or 1.13 percent from the HR CPO period of December 2025 which was recorded at 926.14 per MT.
"The January 2026 CPO HR is lower than the December 2025 period because there is an increase in production, especially from Malaysia, which is not followed by an increase in demand and the strengthening of the ringgit against the US dollar," said Acting Director General of Foreign Trade of the Ministry of Trade Tommy Andana.
Tommy explained that the source of the price for the determination of HR CPO was obtained from the average price during the period of 20 November-19 December 2025 on the CPO exchange in Indonesia which was 853.13 US dollars per MT, the CPO exchange in Malaysia was 978.14 US dollars per MT, and the Port CPO Rotterdam price was 1.187.25 US dollars per MT.
Based on the Regulation of the Minister of Trade (Permendag) Number 35 of 2025, if there is a difference in the average price of the three price sources of more than 40 US dollars, then the calculation of HR CPO uses the average of the two price sources that become the median and the nearest price source from the median.
"Thus, HR is determined based on the CPO exchange in Malaysia and the CPO exchange in Indonesia. Based on this calculation, the HR CPO is set at 915.64 US dollars per MT," said Tommy.
Referring to the determination of HR CPO 1-31 January 2026 and based on Column Number 6 of the Annex to Letter C of the Minister of Finance Regulation (PMK) Number 38 of 2024 jo PMK Number 68 of 2025, the government imposed a CPO BK of 74 US dollars per MT.
Meanwhile, referring to Letter A of the PMK Number 69 of 2025, the PE CPO is 10 percent of the HR CPO for the period 1-31 January 2026, namely 91.5637 US dollars per MT.
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