PALMOILMAGAZINE, JAKARTA – The Indonesian government has set the Reference Price (HR) for crude palm oil (CPO) at USD 924.46 per metric ton (MT) for the export duty (BK) and levy rates under the Public Service Agency of the Palm Oil Plantation Fund Management Board (BLU BPDPKS) for the period of May 1–31, 2025. This figure marks a USD 37.07 or 3.86% decrease from April 2025, which was previously set at USD 961.54/MT.
The decision is stipulated in the Minister of Trade Decree No. 593/2025 on the Reference Price for Crude Palm Oil subject to Export Duty and BLU BPDPKS Levy Tariff.
For May 2025, the CPO export duty (BK) is set at USD 74/MT, referring to Column 6, Attachment C of the Ministry of Finance Regulation (PMK) No. 38/2024. Meanwhile, the Export Levy (PE) is calculated at 7.5% of the reference price, amounting to approximately USD 69.33/MT, as per Attachment I of PMK No. 62/2024.
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According to Isy Karim, Acting Director General of Foreign Trade at the Ministry of Trade, the decline in the CPO reference price is attributed to several global market factors. “One of the main reasons is the reduced demand from major importing countries such as India and China,” he stated. “In addition, falling prices of other vegetable oils—like soybean oil—as well as declining global crude oil prices also contributed to the drop,” Isy explained, as quoted by Palmoilmagazine.com.
The reference price calculation is based on the average prices recorded between March 25 and April 24, 2025, from the following sources:
- Indonesia’s CPO Exchange: USD 845.71/MT
- Malaysia’s CPO Exchange: USD 1,003.22/MT
- Rotterdam Auction Market: USD 1,283.63/MT
The price-setting process follows Minister of Trade Regulation No. 46/2022, which mandates that if the average prices from the three sources differ by more than USD 40, the reference price must be calculated using the two middle values closest to the median. In this case, the prices from the Indonesian and Malaysian CPO exchanges were used to determine the final reference price of USD 924.46/MT.
Meanwhile, refined, bleached, and deodorized (RBD) palm olein sold in branded packaging with a net weight of 25 kg or less will be subject to zero export duty for the month. This exemption is outlined in Minister of Trade Decree No. 594/2025, which lists the approved brands of RBD palm olein eligible for this policy. (P3)
