PALMOILMAGAZINE, JAKARTA – The reference price for Crude Palm Oil (CPO), used to determine the Out Fee (OF) and tariff by the Palm Oil Plantation Fund Management Agency (PFMA), commonly known as the levy, for the period of October 16 to 31, 2023, will be set at US$ 740.67 per metric ton (MT).
This figure represents a reduction of USD 86.70, equivalent to a 10.48% decrease, compared to the preceding period from October 1 to 15, 2023, when it stood at US$ 827.37 per MT.
This information is specified in the Decision of the Minister of Trade, numbered 1733/2023, regarding the CPO Reference Price applicable for calculating the Out Fee and Service Tariff on PFMA from October 16 to 31, 2023.
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The sources to decide CPO RP were from the average price on 25 September 2023 — 9 October 2023 at Indonesian CPO Exchange that reached US$ 709,58/MT; Malaysia Derivatives Exchange reached US$ 771,74/MT; and Rotterdam reached US$ 848,66/MT.
According to the Regulation of Minister of Trade Number 46 / 2022, if average price from three sources of price reached more than US$ 40, CPO RP would be decided by using average data from two sources that became median and the closest sources from the median. It means, CPO RP from Malaysia and Indonesia would be the sources. From the calculation, CPO RP would be US$ 740,67/MT.
“Now CPO RP gets cheaper that is close to threshold which is US$ 680/MT. that is why referring to the regulation of minister of finance (RMF), the government decided that CPO OF would be US$ 18/MT and CPO levy would be US$ 75/MT on the second period in October 2023,” General Director of Foreign Trade Ministry of Trade, Budi Santoso said, as in the official statement to Palmoilmagazine.com, Monday (16/10/2023).
According to RMF Number 39/PMK/0.10/2022 juncto (jo.) Number 71 / 2023, CPO OF on 16 — 31 October 2023 is written on the column number three, attachment letter C which is US$ 18/MT. According to RMF Number 103/PMK.05/2022 jo. Number 154/PMK.05/2022, CPO levy on 16 – 31 October 2023 is written on column three, attachment letter C which is US$ 75/MT. CPO OF and levy decreased from on 1 – 15 October 2023.
“The cheaper CPO PR happened for some factors, such as, the decreasing demands from consumer countries, such as, China and India, the projection of increasing palm oil supply in Malaysia with the highest numbers since October 2022, the decreasing rupiah towards American dollar, and the cheaper vegetable oils,” Budi said. (T2)
