PALMOILMAGAZINE, JAKARTA – The reference price of crude palm oil (CPO) for determining the out fee (OF) and the tariff from the Public Service Obligation Palm Oil Plantation Fund Management Agency (POPFMA), also known as the export levy, for August 1—31, 2024, is set at US$ 820.11 per metric ton (MT).
This represents an increase of US$ 19.37 or 2.42 percent from the previous month’s price of US$ 800.75 per MT. This information is outlined in the Decision of the Minister of Trade Number 965 / 2024 concerning the Crude Palm Oil Reference Price applicable for the out fee and tariff for POPFMA during this period.
“Currently, the CPO reference price has increased and is above the threshold of US$ 680 per MT. According to the regulation of the Minister of Finance (RMF), the government has set the CPO out fee at US$ 33 per MT and the CPO export levy at US$ 85 per MT for August 1—31, 2024,” stated Budi Santoso, General Director of Foreign Trade at the Ministry of Trade, in an official statement to Palmoilmagazine.com on Thursday (1/8/2024).
Also Read: CPO Reference Price Escalates: OF and Levy Set at US$ 118 per Ton for July 2024
The CPO out fee for August 1—31, 2024, refers to Column Number 4, Attachment Letter C, RMF Number 38 / 2024, which is US$ 33 per MT. The CPO export levy for the same period refers to Attachment Letter C, RMF Number 103/PMK.05/2022 juncto (jo) Number 154/PMK.05/2022, which is US$ 85 per MT.
As quoted from Ministry of Trade, the source of CPO reference price decision was from the average price since on 25 June —24 July 2024 at Indonesian CPO Exchange, which was US$ 786,00/MT; Malaysia Derivatives Exchange which was US$ 854,22/MT, and Rotterdam which was US$ 960,62/MT. Accordint to the Regulation of Minister of Trade Number 46 / 2022, if the price difference in the thre exchanges is more than USD 40, CPO reference price would be calculated by using the average price from two sources that became closer price of the median. Malaysia Derivatives Exchange and Indonesian CPO Exchange were the two sources. And from the calculation CPO reference price would be US$ 820,11/MT.
“The increasing CPO reference price happened for the increasing demands from India, but there were not the same with the increasing production, and the increasing price of other vegetable oil price and crude oil price in the world,” Budi mentioned.
Meanwhile, palm cooking oil (refined, bleached, and deodorized/RBD palm olein) in branded packaged and packaged with the net ≤ 25 kg would be charged OF US$ 0/MT. The brand decision of the products would be attached in the Decision of Minister of Trade Number 966 / 2024 about Refined, Bleached, and Deodorized (RBD) Palm Olein Brand Lists in Branded Packages and Packaged with the net ≤ 25 kg. (P2)
