CPO And Kakao Reference Prices Strengthen As Of May

Illustration. (Photo: Doc. Antara)

JAKARTA - Reference prices for palm oil (CPO) and cocoa products rose as of May 2023. Where the reference price for CPO for the period 1 15 May 2023 is the period 115 May 2023 is 955.53 US dollars per MT.

This price is for setting out duties (BK) and tariffs for the Public Service Agency of the Palm Oil Plantation Fund Management Agency (BLU BPDP-KS tariff) or commonly known as Export Levy (PE).

Director General of Foreign Trade of the Ministry of Trade Budi Santoso said this value increased by 22.84 US dollars or 2.45 percent of the CPO reference price for the period 16 30 April 2023.

The determination of the CPO reference price is stated in the Decree of the Minister of Trade Number 940 of 2023 concerning the Reference Price of Crude Palm Oil which is Subjected to Customs and Public Service Tariffs for the Palm Oil Plantation Fund Management Agency.

In addition, cooking oil (Refined, Bleached, and Deodorized or RBD palm olein) in branded packaging and packaged with a net weight of less than 25 kg is subject to US $ 31 per MT BK with a trademark determination as stated in the Decree of the Minister of Trade Number 941 of 2023 concerning the Refined, Bleached, and Deodorized (RBD) Palm Olein Brand in Branded and Packaging Weighted Netto less than 25 Kg.

"Currently, the CPO reference price has increased which is away from a threshold of 680 US dollars per MT. For this reason, referring to the current PMK, the government imposed CPO Exit Customs of 124 MT dollars and CPO Export Charges of 100 US dollars per MT for the period 1-15 May 2023," he said.

Budi said the increase in CPO reference prices was influenced by several factors. One of them is the concern that the market will run low in the world's CPO supply. This is due to a decline in supply in Malaysia and Indonesia due to a decline in production, especially due to the Eid al-Fitr holiday.

In addition, there was an increase in CPO demand as well as the policies of The Fed and the Central Bank of the European Union which raised the benchmark interest rate, thus affecting world commodity prices including CPO.

Meanwhile, the reference price of cocoa beans for the May 2023 period was set at 2,937.18 US dollars per MT, an increase of 182.65 US dollars or 6.63 percent from the previous month.

"This has an impact on increasing the Export Patokan Price (HPE) of cocoa beans in May 2023 to 2,638 US dollars per MT, up 178 dollars or 7.24 percent from the previous period," he said.

Furthermore, Budi said that this price increase did not have an impact on BK cocoa beans, which remained 10 percent according to the Kolom 3 Attachment Letter B in the Minister of Finance Regulation Number 39/PMK/0.10/2022 jo. Number 123/PMK.010/2022.

The increase in the price of references and cocoa beans HPE was influenced by an increase in cocoa demand while cocoa supply decreased. This is due to cocoa farmers who lack pesticides and fertilizers due to the Russian war with Ukraine as well as declining exports of cocoa beans from Ivory Coast.

On the other hand, HPE skin products have not changed from the previous month. However, there have been several changes to the HPE of wood products. The changes to HPE are found in Veneer wood products from plant forests and processed wood products of mixed forest type which fell 50 US dollars per m3 from the previous month.

In addition, veneer products from forest plants for packaging boxes (wooden sheet for packing boxes) and processed wood products from other types of sortiments from balsa, eucalyptus, and other forests increased by 50 US dollars per m3.

Processed wood products from other types of sortiments of ebony type increased by 100 US dollars m3 from the previous month, other processed wood products from the underlying plant forest increased by 250 US dollars per m3. Especially for sawwood from the type of Merbau, up 300 US dollars per m3 from the previous month.

BK for skin products and wood products is listed in Attachment Letter A of the Minister of Finance Regulation Number 39/PMK/0.10/2022 jo. 123/PMK.010/2022.

The determination of the HPE for cocoa beans, HPE for skin products, and HPE for wood products is stated in the Decree of the Minister of Trade Number 939 of 2023 concerning Export Patokan Prices and Reference Prices for Agricultural and Forestry Products Subjected to Exit Customs.