PALMOILMAGAZINE, JAKARTA – The reference price for crude palm oil (CPO) used to determine the Out Fee (OF) and tariff from the Palm Oil Plantation Fund Management Agency (PO PFMA) for the period of October 1-31, 2024, is set at US$ 893.64 per metric ton (MT). This represents an increase of US$ 54.11 or 6.45% compared to the previous month, when the price was US$ 839.53/MT.
This information is outlined in the Decision of the Minister of Trade Number 1330/2024 regarding the CPO reference price applicable for the Out Fee and Tariff under the Public Service Obligation of the PO PFMA for the specified period.
“Currently, the CPO reference price has risen above the threshold of US$ 680/MT. In accordance with the regulations set by the Minister of Finance (RMF), the government has established the CPO OF at US$ 74/MT, and the CPO export levy at 7.5% of the reference price, which amounts to US$ 67.02/MT for October 1-31, 2024,” stated Isy Karim, General Director of Foreign Trade at the Ministry of Trade, in an official statement to Palmoilmagazine.com on Wednesday, October 2, 2024.
Also Read: CPO Reference Price Up in October 2023, CPO OF and Levy
For the period of October 1-31, 2024, the CPO OF will refer to Column Number 6, Attachment Letter C, of RMF Number 38/2024, which is US$ 74/MT. Meanwhile, the CPO export levy will be based on Attachment Letter I, RMF Number 62/2024, amounting to 7.5% of the CPO reference price in October 2024, which is US$ 67.02/MT.
The sources to decide CPO reference price wwere from the average prices on 25 August — 24 September 2024 from some reference, such as, Indonesia CPO Exchange, which was US$ 857,25/MT; Malaysia Derivatives Exchange which was US$ 930,03/MT; and CPO Rotterdam which was US$ 1.040,70/MT. Based on the Regulation of Minister of Trade Number 46 / 2022, if the average price difference from the three sources more than US$ 40, CPO reference price would be calcuolated by using from the average of two sources as the median and the near sources from the median were Malaysia Derivatives Exchange and Indonesia CPO Exchange. Based on the calculation, CPO reference price would be US$ 893,64/MT.
“The increasing CPO reference price happened for the sincreasing demands, namely from India and China, which were not the same with the increasing production. On the other hand, the decreasing production happened for the long drought season,” Isy explained.
Meanwhile, palm cooking oil (refined, bleached, and deodorized/RBD palm olein) in branded packages with the net ≤ 25 kg would be charged by OF about US$ 0/MT. the brands of the production were written in the Decision of Minister of Trade Number 1331 / 2024 about the Brand Lists of RBD Palm Olein in Branded Packages and Packed with the net ≤ 25 Kg. (P2)
