PALMOILMAGAZINE, JAKARTA – The Reference Price (HR) of crude palm oil (CPO) commodities for export duties (BK) and tariffs of the Public Service Agency for the Management of Palm Oil Plantation Funds (BLU BPDP-KS), or export levies (PE), for the November 2024 period is set at USD 961.97 / MT. This value increased by USD 68.32 or 7.65 percent from the October 2024 period which was recorded at USD 893.64/MT.
The determination is stated in the Decree of the Minister of Trade Number 1532 of 2024 concerning the Reference Price of Crude Palm Oil Subject to Export Duty and the General Service Tariff of the Palm Oil Plantation Fund Management Agency.
Meanwhile, the November 2024 CPO BK stipulation refers to Column Number 7 of Appendix Letter C of the Minister of Finance Regulation (PMK) Number 38 of 2024 amounting to USD 124/MT. Meanwhile, the determination of PE CPO refers to Annex I of PMK Number 62 of 2024 at 7.5 percent, amounting to USD 72.1475/MT.
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Director General of Foreign Trade of the Ministry of Trade Isy Karim said, “Currently, the CPO HR is increasing away from the threshold of USD 680/MT. Therefore, referring to the prevailing PMK, the government imposes BK CPO amounting to USD 124/MT and PE CPO amounting to 7.5 percent of HR CPO November 2024 which is USD 72.1475/MT,” Isy said, quoted by Palmoilmagazine.com from the official website of the Ministry of Trade.
Isy explained, the source of the CPO HR determination was obtained from the average price in the period of September 25-October 24, 2024 on the CPO exchange.
September-24 October 2024 on the Indonesian CPO exchange at USD 904.60/MT, Malaysian CPO exchange at USD 1,019.33/MT, and Rotterdam CPO auction market at USD 1,153.64/MT. Based on the Regulation of the Minister of Trade (Permendag) No. 46 of 2022, if there is a difference in the average price of the three exchanges of more than USD 40, then the calculation of CPO HR uses the average of two price sources which become the median. The closest price sources to the median are the CPO Exchange in Malaysia and the CPO Exchange in Indonesia. In accordance with this calculation, the CPO HR was set at USD 961.97/MT.
“The increase in CPO HR was influenced by increased demand, especially from India and China. However, global production fell due to the long drought. In addition, the increase in world crude oil prices and the Malaysian export duty tariff that has been in effect since October 1, 2024 also hoisted the CPO HR,” Isy added.
Furthermore, cooking oil (refined, bleached, and deodorized/RBD palm olein) in branded packaging and packaged with a net weight of ≤ 25 kg is subject to BK USD 31/MT. The brand designation is stated in the Decree of the Minister of Trade (Kepmendag) Number 1533 of 2024 concerning List of Brands of Refined, Bleached, and Deodorized (RBD) Palm Olein in Branded Packaging and Packaged with a Net Weight of ≤ 25 Kg. (P3)
