PALMOILMAGAZINE, JAKARTA The reference price for crude palm oil (CPO) determining the out fee (OF) and tariff for the Public Service Obligation Palm Oil Plantation Fund Management Agency (PFMA), also known as the export levy, from January 1 to 15, 2024, is set at US$746.69 per metric ton (MT). This figure represents a decrease of US$20.82, or 2.71 percent, compared to the rate from December 16 to 31, 2023, which stood at US$767.51/MT.
This information is stipulated in the Minister of Trade’s Decision Number 2017/2023 regarding the crude palm oil reference price applicable for out-of-service fees and tariffs on the Palm Oil Plantation Fund Management Agency from January 1 to 15, 2024.
“CPO reference price gets cheaper to be US$ 746,69/MT. That is why, according to the regulation of the minister of finance (RMF), the government would charge CPO of US$ 18/MT and CPO levy US$ 75/MT on January 1, 2024,” General Director of Foreign Trade Ministry of Trade, Budi Santoso, said in the official statement to Palmoilmagazine.com, December 29, 2023.
Also Read: CPO Reference Price Up in October 2023, CPO OF and Levy Stay Consistent
The sources of price to decide the CPO reference price were the average prices on December 10–24, 2023, at the Indonesian CPO Exchange, which were US$ 712,19/MT, at the Malaysia Derivatives Exchange, which were US$ 781,19/MT, and at Rotterdam, which were US$ 873/MT.
According to the Regulation of Minister of Trade Number 46/2022 about Procedures to Decide Export Reference Price on Agriculture and Forestry Products that are charged on Out Fee; Reference Price on Agriculture and Forestry Products and Lists of Brands of Refined, Bleached, and Deodorized Palm Olein that are charged on Out Fee; and Tariff on Public Service Obligation Palm Oil Plantation Fund Management Agency, if the average prices from three sources are different and more than US$ 40, the CPO reference price would be calculated by using the average from two sources that become the median and the closest source from the median.
Also Read:
- Minister of Agriculture Amran Sulaiman Supports Palm Oil Development to Downstreaming
- Minister Amran Encourages Unity of Palm Associations at ASPEKPIR Inaugural Event
- IPOSC Advocates Increased Productivity for Smallholder Plantations
- Palm Oil Advocacy Efforts by Workers and Stakeholders in the European Union
It means the reference price would be from the Malaysian Derivatives Exchange and the Indonesian CPO Exchange. According to the calculation, the CPO reference price would be US$ 746,69/MT.
CPO OF on January 1–15, 2024 refers to Colom 3, Attachment Letter C, RMA Number 39/PMK/0.10/2022 juncto (jo) and Number 71/2023, which is US$ 18/MT. The CPO levy on January 1–15, 2024, refers to Attachment Letter C, RMF Number 103/PMK.05/2022, jo. 154/PMK.05/2022, which is US$ 75/MT. It means the CPO OF and levy would be US$93 per ton.
Besides, palm cooking oil (refined, bleached, and deodorized/RBD Palm Olein) in branded packages and packed within a net weight of ≤ 25 kg would get a CPO of US$ 0/MT, and the brand lists would be registered in the Decision of Minister of Trade Number 2018/2023 about Brand Lists of Refined, Bleached, and Deodorized (RBD) Palm Olein in Branded Packaged and Packed with a net weight of about 25 kg.
Budi Santoso said the decreasing CPO reference price happened for some factors, such as the decreasing demands from China because it got more expensive in the previous periods. “Including the decreasing production in Indonesia and Malaysia because of climate and the cheaper soyoil,” Budi said. (T2)
