PALMOILMAGAZINE, JAKARTA – The reference price (RP) for crude palm oil (CPO) used to determine the out fee (OF) and the export levy by the Palm Oil Plantation Fund Management Agency (PFMA) in June 2024 is set at $778.82 per metric ton (MT). This marks a decrease of $98.46 or 11.22 percent from May 2024, when the price was $877.28/MT.
“CPO reference prices have decreased and are nearing the threshold of $680/MT. Consequently, in accordance with regulations from the Ministry of Finance, the government has decided that the CPO out fee will be $18/MT and the export levy will be $75/MT in June 2024,” stated Budi Santoso, the General Director of Foreign Trade at the Ministry of Trade, in an official statement to Palmoilmagazine.com on Saturday, June 1, 2024.
This adjustment means the combined CPO levy and out fee will be $93 per ton, a reduction of about $49 per ton from the previous rate of $142 per ton in May 2024.
These changes are outlined in the Minister of Trade’s Decision Number 662 / 2024 regarding the Crude Palm Oil Reference Price for June 2024. The CPO RP is derived from the average prices recorded between April 25 and May 24, 2024, at various exchanges: the Indonesian CPO Exchange ($735.03/MT), the Malaysia Derivatives Exchange ($822.61/MT), and the Rotterdam Exchange ($923.53/MT).
According to the Regulation of Minister of Trade Number 46 / 2022, if there are average price differences more than US$ 40, CPO RP should be using the average price from two sources of price that became the median and the closest price from the median. Based on the regulation, CPO RP derived from Malaysia Derivatives Exchange and Indonesia CPO Exchange. Based on the calculation, CPO RP would be US$ 778,82/MT.
Besides, palm cooking oil (refined, bleached, and deodorized/RBD palm olein) in branded packs and packed with net ≤ 25 kg would be charged by OF – US$ 0/MT and the brands are written on the Decision of Minister of Trade Number 663 / 2024 about Lists of Brand of Refined, Bleached, and Deodorized (RBD) Palm Olein in Branded Packs and Packed with net ≤ 25Kg.
CPO OF on 1 June 2024—30 June 2024 would refer to Colom 3, Attachment Letter C, Regulation of Minister of Finance Number 39/PMK/0.10/2022 juncto (jo) Number 71 / 2023 that is US$ 18/MT. while CPO levy in June 2024 would refer to Attachment Letter C, Regulation of Minister of Finace Number 103/PMK.05/2022 jo. 154/PMK.05/2022 which is US$ 75/MT.
“The cheaper CPO RP happened for the cheaper soyoil price and crude oil in the world, and the increasing production which was not balanced with the increasing demands,” Budi said. (T2)
