PALMOILMAGAZINE, JAKARTA — The Indonesian government has set the crude palm oil (CPO) reference price for October 2025 at US$963.61 per metric ton (MT), marking an increase of US$8.89 or 0.93% compared to September’s reference price of US$954.71/MT.
The decision is outlined in the Minister of Trade Decree (Kepmendag) No. 1991 of 2025 concerning the CPO Reference Price for Export Levy (BK) and Public Service Tariff for the Plantation Fund Management Agency (BPDP), effective from October 1–31, 2025.
According to Acting Director General of Foreign Trade at the Ministry of Trade, Tommy Andana, the rise in the reference price places CPO far above the threshold of US$680/MT. As a result, the government set the export levy (BK) at US$124/MT and the export duty (PE) at 10% of the reference price, equal to US$96.36/MT for October 2025.
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The export levy is based on Minister of Finance Regulation (PMK) No. 38/2024, while the export duty follows PMK No. 30/2025. The calculation of the reference price is derived from the average market prices recorded between August 25 and September 24, 2025, across three exchanges:
- Indonesia CPO Exchange: US$889.19/MT
- Malaysia CPO Exchange: US$1,038.02/MT
- Port of Rotterdam: US$1,233.93/MT
In line with Trade Ministry Regulation (Permendag) No. 46/2022, if the price spread between the three sources exceeds US$40, the reference price is determined from the two prices closest to the median. Therefore, the October 2025 reference price was calculated using figures from the Malaysia and Indonesia CPO exchanges.
In addition to CPO, the government also set an export levy for branded packaged cooking oil (Refined, Bleached, and Deodorized/RBD palm olein) in containers weighing ≤ 25 kg at US$31/MT, as stipulated in Kepmendag No. 1992/2025.
“The increase in the CPO reference price is largely driven by surging demand, particularly from India, which has not been matched by higher production,” Tommy said in an official statement received by Palmoilmagazine.com on Wednesday (Oct 1, 2025). (P2)
