PALMOILMAGAZINE, JAKARTA – Indonesia’s crude palm oil (CPO) price distributed through Kharisma Pemasaran Bersama Nusantara (KPBN) remained stable at the start of the week. On Monday (May 4, 2026), the price was set at IDR 15,400 per kilogram, unchanged from the highest offer recorded on Thursday (April 30, 2026).
According to KPBN data, the Franco Dumai CPO price was also set at IDR 15,400/kg. Meanwhile, the FOB Talang Duku price opened at IDR 15,215/kg. For Loco Parindu, the opening price stood at IDR 15,065/kg, but the tender ended in a withdrawal (WD) after the highest bid only reached IDR 14,875/kg.
In the global market, positive sentiment continued to underpin domestic price stability. CPO trading on Bursa Malaysia Derivatives closed more than one percent higher on Monday.
Also Read: Indonesia Raises May 2026 CPO Reference Price to USD 1,049.58/MT, Export Duty Set at USD 178
According to Reuters, the benchmark July 2026 CPO futures contract rose by RM50 per ton, or about 1.09 percent, settling at RM4,620 per ton, equivalent to approximately US$1,169.62 per ton.
The rally was driven by market optimism over Malaysia’s plan to implement a B15 palm-based biodiesel program starting in June. The policy is part of broader efforts to reduce energy costs, particularly for domestic diesel consumption.
The rollout will be gradual, with blending targets expected to increase to 20 percent in the near term. Over the next two to three years, the biodiesel mix could potentially be expanded to nearly 50 percent.
If fully implemented, the policy is expected to significantly boost Malaysia’s domestic CPO demand, strengthening palm oil’s role as a key renewable energy feedstock in Southeast Asia while supporting prices amid ongoing global market volatility.
Meanwhile, gains in soybean oil (soyoil) prices in the international market also contributed to the positive sentiment. On the Chicago Board of Trade, soyoil prices increased by around 0.36 percent.
This trend is significant as CPO and soybean oil compete within the global vegetable oil market. Price movements in one commodity often influence the other, reinforcing broader market trends.
With supportive global sentiment in place, domestic CPO prices are expected to remain stable in the near term, although the market continues to monitor production trends and global demand dynamics. (P3)
