Bad Weather and El Nino Triggered Cocoa Price Increase

Cocoa (between)

JAKARTA - The Ministry of Trade (Kemendag) said that the increasing reference price (HR) and export benchmark price (HPE) of cocoa bean commodities were influenced by supply disruptions due to bad weather and production decline triggered by the El Nino phenomenon.

Director General of Foreign Trade at the Ministry of Trade Tommy Andana said the cocoa bean HR for the period of August 2026 was set at 5,424.96 US dollars per MT, an increase of 1,455.41 US dollars or 36.66 percent compared to the previous period. The increase pushed the cocoa bean HPE to 5,064 US dollars per MT, up 1,418 US dollars or 38.90 percent.

"The determination of HR and HPE takes into account market conditions, the development of international logistics costs, and global trade dynamics. The increase in cocoa bean HR and HPE is influenced by supply disruptions in major West African producer countries due to pest attacks, bad weather, and production declines triggered by the El Nino phenomenon," explained Tommy, quoting Antara.

For the period 1-31 August 2026, the cocoa bean BK is set at 7.5 percent, referring to Column Number 4 of Annex Letter B of the PMK Number 38 of 2024 as amended by PMK Number 68 of 2025.

Meanwhile, the export levy (PE) for cocoa beans is also set at 7.5 percent, in accordance with Letter C of the PMK Number 69 of 2025 as amended by PMK Number 9 of 2026.

On the other hand, HPE leather products in the August 2026 period were the same as the previous period. Meanwhile, HPE pine sap was set at US$1,013 per MT, an increase of US$11 or 1.10 percent compared to July 2026.

HPE wood products in the August 2026 period increased in several types. The increase was experienced by veneers from natural forests as well as processed wood products with a cross-section area of 1,000 mm² to 4,000 mm² originating from mixed forests and other types of plantation forests, such as teak, balsa, eucalyptus, and other types.

Conversely, HPE wood products decreased in several types. The products that fell were veneer from planted forests, wooden sheets for packing boxes, wood in chips or particles, and processed wood products with a cross-section of 1,000 mm² to 4,000 mm² of meranti, merbau, and other sortiments of eboni.

There was also a decrease in products derived from acacia, pine, gmelina, sengon, and rubber tree plantations.

Furthermore, HPE wood chips (chipwood), processed wood with a cross-section area of 1,000 mm² to 4,000 mm² from other sortiments originating from the sungkai type plantation forest, as well as special processed wood products of merbau type with a cross-section area of 4,000 mm² to 10,000 mm² are unchanged in the period August 2026 compared to July 2026.

The determination of HR CPO, HR and HPE of cocoa bean products, wood products, and pine sap is determined through the Minister of Trade Decree Number 1667 of 2026 concerning the Export Reference Price and Reference Price for Agricultural and Forestry Products Subject to Export Duty and Tariff Service of General Service Agency.