PALMOILMAGAZINE, JAKARTA – The Indonesian government has set the Reference Price (HR) for crude palm oil (CPO) for the period of May 1–31, 2026 at USD 1,049.58 per metric ton (MT). The figure increased by USD 59.95, or 6.06%, from the April 1–30, 2026 level of USD 989.63 per MT.
The higher reference price will affect the calculation of Export Duty (BK) and the levy imposed by the Public Service Agency of the Plantation Fund Management Agency (BLU BPDP), commonly known as the palm oil export levy.
Director General of Foreign Trade at the Ministry of Trade, Tommy Andana, said that under the prevailing Ministry of Finance regulation, the government has set the CPO export duty for May 2026 at USD 178 per MT.
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Meanwhile, the export levy has been fixed at 12.5% of the May 2026 CPO reference price, equivalent to USD 131.1978 per MT.
Tommy explained that the export duty refers to Ministry of Finance Regulation No. 38/2024 in conjunction with Regulation No. 68/2025, while the export levy follows Regulation No. 69/2025 in conjunction with Regulation No. 9/2026.
He added that the May CPO reference price was calculated based on the average price recorded between March 20 and April 19, 2026. During that period, prices stood at USD 955.79 per MT on the Indonesian CPO Exchange, USD 1,143.37 per MT on the Malaysian CPO Exchange, and USD 1,475.07 per MT at Rotterdam Port.
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“The May 2026 reference price increased from the previous period due to stronger demand, while production declined following the Eid holiday. In addition, higher crude oil prices linked to geopolitical tensions in the Middle East also supported the rise in CPO prices,” Tommy said in a statement received by Palmoilmagazine.com on Thursday (April 30).
Under Trade Ministry Regulation No. 35/2025, if the price gap among the three reference sources exceeds USD 40, the HR CPO is determined using the two median and closest price sources.
Using that formula, the government relied on prices from the Malaysian CPO Exchange and the Indonesian CPO Exchange, resulting in the final May reference price of USD 1,049.58 per MT.
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In addition to CPO, the government also set the export duty for branded Refined, Bleached and Deodorized (RBD) palm olein packed in containers of up to 25 kilograms at USD 48 per MT.
The regulation is stipulated under Trade Minister Decree No. 1029/2026, while the official May CPO reference price is listed in Trade Minister Decree No. 1028/2026 on Export Benchmark Prices and Reference Prices for agricultural and forestry products subject to export duties and public service tariffs.
The increase in the May reference price is expected to provide positive momentum for Indonesia’s palm oil industry, particularly through stronger export earnings and state revenue, although it will also increase levy costs for exporters. (P3)
