PALMOILMAGAZINE, JAKARTA – The Crude Palm Oil (CPO) reference price, determining the Out Fee (OF) and tariff in the Palm Oil Plantation Fund Management Agency (PFMA), also known as export levy, for the period of January 16–31, 2024, is set at US$ 774.93/metric ton (MT).
This figure reflects an increase of US$ 28.24 or 3.78% from the preceding period of January 1–15, 2024, where the price stood at USD 746.69/MT.
This information is stipulated in the Decision of the Minister of Trade, Number 25/2024, concerning the Crude Palm Oil Reference Price utilized for determining Out Fee and Service Tariff in PGMA during January 16-31, 2024.
The CPO reference price sources are derived from the average prices recorded from December 25, 2023, to January 9, 2024, at the Indonesia CPO Exchange (US$ 755.98/MT), Malaysia Derivatives Exchange (US$ 793.87/MT), and CPO Rotterdam (US$ 849.16/MT).
Based on the Regulation of Minister of Trade Number 46 / 2022, if there are different average price from the three sources that reached more than US$ 40, CPO reference price to be would be the average price from two sources that became the median and the closest sources from the median price. It means, the reference price derived from Malaysia Derivatives Exchange and Indonesia CPO Exchange. Based on the calculation, CPO reference price would be US$ 774,93/MT.
“CPO reference price escalates and more than the threshold which is US$ 680/MT. That is why according to the regulation of minister of finance (RMF), the government decided CPO OF would be US$ 18/MT and CPO levy would be US$ 75/MT for the next two weeks in January 2023,” General Director of Foreign Trade Ministry of Trade, Budi Santoso said, as in the official statement to Palmoilmagazine.com, Tuesday (16/1/2024).
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Based on RMF Number 39/PMK/0.10/2022 junto (jo.) Number 71 / 2023, CPO OF on 16—31 January 2024 is written on Colom 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 January 2024 is written on Colom number 3 Attachment letter C which is US$ 75/MT.
It means, CPO OF and levy in total would be US$ 93/MT or increase from on 1—15 January 2024
Budi Santoso also mentioned, CPO reference price happened for some factors, such as, the increasing crude oil price in the world, increasing vegetable oil prices (soyoil) because of the concern about decreasing production from Brazil and dry season. “And the worry of close palm oil supplies from Malaysia, the decreasing Malaysia ringgit towards US dollar,” Budi said. (T2)
