PALMOILMAGAZINE, JAKARTA – The Reference Price (HR) of crude palm oil (CPO) commodities for determining export duties (bea keluar/BK) and tariffs for the Public Service Agency for the Management of Palm Oil Plantation Funds (BLU BPDP-KS tariff) was recorded at USD 1,071.67/MT in the December 2024 period. The HR value, which is also the Export Levy (pungutan ekspor/PE), increased by USD 109.70 or 11.40 percent from the November 2024 period which was recorded at USD 961.97/MT.
This determination is stated in the ‘Decree of the Minister of Trade Number 1617 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’ for the period December 1-31, 2024. Meanwhile, the determination of BK CPO for the December 2024 period refers to Column Number 9 of Appendix Letter C of the Minister of Finance Regulation (PMK) Number 38 of 2024 which amounted to USD 178/MT.
Meanwhile, the CPO Export Levy for the period of December 1-31, 2024 refers to Appendix I of PMK Number 62 of 2024 which is 7.5 percent of the CPO HR for the period of December 2024, amounting to USD 80.3752/MT.
Also Read: Reference Price Strengthens, BK and PE CPO Set at USD 196.1 Per MT for November 2024 Period
Director General of Foreign Trade of the Ministry of Trade Isy Karim said that currently, the CPO HR is increasing away from the USD 680/MT threshold. “Therefore, referring to the PMK, the government imposes CPO export duties amounting to USD 178/MT and CPO export levy amounting to 7.5 percent of HR CPO for December 2024 which is USD 80.3752/MT,” said Isy in a statement received by Palmoilmagazine.com.
Isy further explained, the determination of HR CPO was obtained from the average price of October 25-November 24, 2024 period in CPO Exchange in Indonesia at USD 1,019.97/MT, CPO Exchange in Malaysia at USD 1,123.37/MT, and CPO Rotterdam Auction Market at USD 1,279.33/MT.
“Based on Minister of Trade Regulation No. 46 of 2022, if there is a difference in the average price of three price sources of more than USD 40, then the calculation of CPO HR uses the average of the two price sources that become the median and the price source closest to the median, namely the CPO exchanges in Indonesia and Malaysia. In accordance with this calculation, the CPO HR is set at USD 1,071.67/MT,” Isy explained.
In addition, Isy continued, 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 48/MT. For brand assignment, it is regulated in the Decree of the Minister of Trade Number 1618 of 2024 concerning List of Brands of Refined, Bleached, and Deodorized (RBD) Palm Olein in Branded and Packaged Packages with Net Weight ≤ 25 Kg.
“The increase in CPO HR was influenced by increased demand, especially from India as well as the European and North American regions, which was not matched by an increase in global production. In addition, there was a decline in production, a temporary ban on CPO exports from Thailand, an increase in domestic consumption in Malaysia, and the weakening of the ringgit currency which also hoisted CPO HR,” Isy concluded. (P3)
