PALMOILMAGAZINE, JAKARTA – In May 2024, the reference price for Crude Palm Oil (CPO) used to determine the Out Fee (OF) and tariff on the Public Service Obligation Palm Oil Plantation Fund Management Agency (PFMA), also known as levy, is set at US$ 877.28 per metric ton (MT). This figure marks an increase of US$ 19.67 or 2.29 percent from April 2024, where it stood at US$ 857.62/MT.
“Given the rise in the CPO reference price, surpassing the threshold of US$ 680/MT as per the regulation of the Minister of Finance, the government has decided to set the CPO OF at US$ 52/MT and the CPO levy at US$ 90/MT for May 2024,” stated Budi Santoso, General Director of the Trade Ministry, in an official statement to Palmoilmagazine.com on Friday (3/5/2024).
This decision is outlined in the Minister of Trade’s Decision Number 576/2024 regarding the CPO Reference Price for the Out Fee and tariff on the Palm Oil Plantation Fund Management Agency in May 2024. The reference price is determined based on the average prices recorded from March 25 to April 24, 2024, at the Indonesian CPO Exchange (US$ 847.02/MT), Malaysia Derivatives Exchange (US$ 907.55/MT), and Rotterdam (US$ 1,004.75/MT).
Based on the Regulation of Minister of Trade Number 46 / 2022, if the average price difference from the three sources more than i US$ 40, CPO reference price would be calculated by using two sources of price that became the median of the closest price from the media. CPO reference derived price from Malaysia and Indonesia and from the regulation, it would be US$ 877,28/MT.
CPO OF and levy would become US$ 142 per ton or not change from the previous period (April 2024).
Besides, palm oil (refined, bleached, and deodorized/RBD palm olein) in branded packages and packaged with in net weight ≤ 25 kg would be charged by OF which is US$ 0/MT and the brands would be written in the Decision of Minister of Trade Number 577 / 2024 about Lists of Brand of Refined, Bleached, and Deodorized (RBD) Palm Olein in Branded Packages and Packaged within net weight ≤ 25 Kg.
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CPO OF in May 2024 refers to Colom Number 5, Attachment letter C, Regulation of Minister of Finance (RMF) Number 39/PMK/0.10/2022 juncto (jo.) Number 71 / 2023 which is US$ 52/MT. CPO levy in May 2024 refers to Attachment letter C, RMF Number 103/PMK.05/2022 jo. 154/PMK.05/2022 which is US$ 90/MT.
Budi continued the increasing CPO OF happened for some factors, such as, the increasing demands as the anticipation when Idul Fitri took place. “While palm oil production in Malaysia and Indonesia got decreasing in numbers because of weather, and the conflicts between Ukraine and Russia, and also Iran and Israel in war. These delivered impacts for crude oil and other vegetable oil price,” he said. (T2)
