PALMOILMAGAZINE, JAKARTA – The reference price for crude palm oil (CPO) used to determine out fees and export duties by the Palm Oil Plantation Fund Management Agency (PO PFMA) has increased for the period of 1–30 September 2024.
According to the Decision of the Minister of Trade Number 1204 / 2024, the CPO reference price for this month is set at US$ 839.53 per metric ton (MT), up US$ 19.42 or 2.32% from the August 2024 reference price of US$ 820.11/MT.
Isy Karim, General Director of Foreign Trade at the Ministry of Trade, noted that the increased CPO reference price is above the threshold of US$ 680/MT. Consequently, under the regulation of the Minister of Finance (RMF), the government has set the CPO out fee at US$ 52/MT and the export duties at US$ 90/MT for the period of 1–30 September 2024.
Also Read: CPO Reference Price Escalates: OF and Levy Set at US$ 118 per Ton for July 2024
“The decision regarding the CPO out fee follows Column Number 5, Attachment Letter C, RMF Number 38 / 2024, which establishes the out fee at US$ 52/MT. The export duties of US$ 90/MT are based on Attachment Letter C, RMF Number 103/PMK.05/2022 in conjunction with 154/PMK.05/2022,” Isy Karim stated in an official statement to Palmoilmagazine.com on Wednesday (4/9/2024).
It means the total CPO out fee and export duties would be US$ 142/ton, gets increased US$ 24/ton to August 2024 period that was US$ 118/ton.
CPO IDR was decided from the average price from on 25 July—24 August 2024 from some sources of references, such as, Indonesian CPO Exchange at US$ 804,96/MT, Malaysia Derivatives Exchange at US$ 874,10/MT, and CPO Rotterdam at US$ 970,41/MT. based on the Regulation of Minster of Trade Number 46 / 2022, if the average different price more than US$ 40 from the three sources, CPO IDR would be calculated by using the two average prices as the median. They were Malaysia and Indonesia which got CPO IDR at US$ 839,53/MT.
Isy Karim also said that the increasing CPO IDR happened for some factors, such as, the increasing other vegetable oil prices, such as, soyoil and the increasing demands with no enough production particularly because of the decreasing CPO production in Malaysia.
Meanwhile for palm cooking oil products (refined, bleached, and deodorized/RBD palm olein) in branded packages with the net weigh ≤ 25 kg, would not get out fee or about US$ 0/MT. It is regulated in the Decision of Minister of Trade Number 1205 / 2024 that registered lists of brands of RBD Palm Olein in branded packages and packaged with net weigh ≤ 25 Kg. (P2)
