PALMOILMAGAZINE, JAKARTA – Indonesia’s crude palm oil (CPO) prices continued to strengthen in the domestic market on Tuesday (April 21, 2026), reflecting positive global sentiment and policy support.
Prices set by PT Kharisma Pemasaran Bersama Nusantara (KPBN) reached IDR 15,250 per kg, marking an increase of IDR 55 per kg or about 0.36% compared to IDR 15,195 per kg recorded on Monday (April 20, 2026).
According to data compiled by Palmoilmagazine.com from KPBN, the Franco Dumai CPO price was set at IDR 15,250 per kg, while the FOB Talang Duku price stood at IDR 15,050 per kg. The increase reflects improving market sentiment both domestically and globally.
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In the international market, CPO prices on the Bursa Malaysia Derivatives (BMD) also extended gains for a second consecutive session. The rally was driven by stronger prices of competing vegetable oils and continued support from Indonesia’s biodiesel policy, although expectations of rising production capped further upside.
According to Reuters, the benchmark July 2026 CPO contract on the Bursa Malaysia Derivatives Exchange rose by RM63 per ton, or 1.44%, to close at RM4,561 per metric ton. During the session, prices briefly surged as much as 2.45%—their highest level in over a week—before easing toward the close.
The upward trend was also supported by gains in other vegetable oils. On the Dalian Commodity Exchange, the most active soybean oil contract increased by 1.90%, while palm oil futures climbed 3.33%. Meanwhile, soybean oil prices on the Chicago Board of Trade edged up 0.62%.
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CPO prices typically track movements in rival vegetable oils, given the intense competition in the global edible oil market. When soybean oil and similar commodities strengthen, palm oil generally follows the same direction.
From a fundamental standpoint, additional support comes from Indonesia—the world’s largest CPO producer and exporter—which plans to raise its palm oil-based biodiesel blending mandate to 50% (B50) starting July 1, 2026, up from the current 40% (B40). This policy is expected to boost domestic consumption while tightening export supply in the global market.
However, market participants remain cautious about potential production increases in major producing countries, which could limit further price gains. As a result, CPO prices are expected to remain volatile, balancing between global demand optimism and supply-side pressures. (P3)
