PALMOILMAGAZINE, JAKARTA – The Reference Price (HR) for Crude Palm Oil (CPO), which determines the Export Duty (BK) and the Public Service Agency (BLU) Palm Oil Fund Management Agency (BPDP-KS) Levy (PE) for March 2025, has been set at USD 954.50 per metric ton (MT). This marks a decrease of USD 0.94 or 0.10% compared to the CPO reference price for February 1–28, 2025, which was recorded at USD 955.44/MT.
This decision is outlined in Minister of Trade Decree (Kepmendag) No. 220 of 2025, regulating the CPO reference price for export duties and BPDP-KS levy in March 2025.
Director General of Foreign Trade at the Ministry of Trade, Isy Karim, explained that the March 2025 CPO Export Duty refers to Column 7, Appendix C of Minister of Finance Regulation (PMK) No. 38 of 2024, which sets the duty at USD 124/MT. Meanwhile, the March 2025 CPO Export Levy follows Appendix I of PMK No. 62 of 2024, imposing a 7.5% tariff on the CPO reference price, amounting to USD 71.59/MT.
“The current CPO Reference Price is approaching the threshold of USD 680/MT. Therefore, based on the prevailing PMK, the government imposes an Export Duty of USD 124/MT and an Export Levy of 7.5% on the March 2025 CPO Reference Price, totaling USD 71.5877/MT for March 2025,” Isy stated, as quoted by Palmoilmagazine.com from the official Ministry of Trade website.
The CPO reference price is derived from the average price recorded between January 25 and February 24, 2025, in the following markets:
- Indonesia’s CPO Exchange: USD 845.38/MT
- Malaysia’s CPO Exchange: USD 1,063.62/MT
- Rotterdam Auction Market: USD 1,418.68/MT
According to Minister of Trade Regulation (Permendag) No. 46 of 2022, if the average price difference among the three sources exceeds USD 40, the reference price calculation is based on the median price source and the closest price to the median. Consequently, the March 2025 CPO Reference Price was determined using the prices from Malaysia’s and Indonesia’s CPO exchanges, leading to a final HR of USD 954.50/MT.
The decline in the CPO Reference Price is attributed to several factors, including decreasing demand from India and falling prices of other vegetable oils.
Additionally, branded refined, bleached, and deodorized (RBD) palm olein, packaged in net weights of ≤ 25 kg, is subject to an Export Duty of USD 31/MT, as specified in Kepmendag No. 221 of 2025 regarding the list of branded RBD palm olein products in packaging of ≤ 25 kg. (A3)
