PALMOILMAGAZINE, JAKARTA — Crude palm oil (CPO) prices at PT Kharisma Pemasaran Bersama Nusantara (KPBN Inacom) slipped slightly on Monday (January 12, 2026). The KPBN benchmark was set at IDR14,401 per kg, down IDR10 per kg or around 0.07% from Friday’s level of IDR14,411 per kg.
Based on information obtained by Palmoilmagazine.com from KPBN, Franco Dumai CPO was priced at IDR14,401 per kg, FOB Talang Duku at IDR14,201 per kg, and Franco Teluk Bayur at IDR14,271 per kg.
Meanwhile, according to Reuters, Malaysian palm oil futures are expected to remain under pressure in the near term, as production continues to exceed earlier expectations—particularly in Malaysia—leading to rising stockpiles, said industry analyst Dorab Mistry.
The benchmark March palm oil contract on the Bursa Malaysia Derivatives Exchange (BMD) settled at 4,043 ringgit per metric ton last Friday. Prices had previously fallen to their lowest level in more than six months in December.
“Palm oil futures on the BMD are under pressure. Fund investors have exited the market, and this weakness is likely to persist until production genuinely declines,” Mistry said at an industry conference in Karachi, Pakistan, on Saturday.
In November, Mistry had projected palm oil prices could climb to 5,500 ringgit per ton during the January–March period, based on expectations that Indonesia would take over more plantations and move closer to implementing a 50% biodiesel blend (B50).
Also Read: Indonesia Sets January 2026 Biodiesel Market Index at IDR 13,631 per Liter
However, that outlook has since shifted. Mistry noted that global palm oil production has increased by around 1 million tons more than initially forecast, while inventories have surged and biofuel demand—particularly from the United States—has fallen short of expectations.
In Malaysia, the world’s second-largest palm oil producer, palm oil inventories are now projected to rise above 3 million metric tons, significantly higher than the earlier estimate of around 2 million tons, as production has remained strong since October.
KPBN Tender Prices (Rp/kg, excluding VAT) — Monday, January 12, 2026:
- CPO Franco Dumai: Rp14,401 – EUP
- CPO FOB Talang Duku: Rp14,201 – MM
- CPO Franco Teluk Bayur: Rp14,271 – WIRA
(P2)
