PALMOILMAGAZINE, JAKARTA – Indonesia’s crude palm oil (CPO) prices marketed through Kharisma Pemasaran Bersama Nusantara (KPBN) posted a solid increase on Tuesday (May 5, 2026), tracking gains in the global market.
KPBN set the CPO price at IDR 15,625 per kilogram, up by IDR 225/kg or approximately 1.46 percent compared to Monday’s level of IDR 15,400/kg.
According to KPBN data, the Franco Dumai price was fixed at IDR 15,625/kg. Meanwhile, Loco Parindu opened at IDR 15,175/kg but ended in a withdrawal (WD), with the highest bid reaching only IDR 15,100/kg. A similar pattern was seen in Loco Kembayan, which opened at IDR 15,275/kg and was withdrawn after the top bid stood at IDR 15,075/kg.
Globally, CPO prices continued their upward trajectory. Trading on Bursa Malaysia Derivatives recorded another strong gain, pushing prices to their highest level in four weeks.
According to Reuters, the benchmark July 2026 CPO futures contract surged by RM88 per ton, or about 1.9 percent, closing at RM4,710 per metric ton—its highest level since April 7, 2026.
The rally has been fueled by growing optimism over Malaysia’s upcoming B15 biodiesel program, set to begin in June. The policy mandates a 15 percent palm oil blend in diesel and is aimed at reducing domestic fuel costs while expanding palm oil’s role in the national energy mix.
Also Read: Indonesia Raises May 2026 CPO Reference Price to USD 1,049.58/MT, Export Duty Set at USD 178
Market participants expect the initiative to significantly boost Malaysia’s domestic CPO consumption, providing additional price support in the global market.
Further support came from the broader vegetable oil complex. On the Chicago Board of Trade, soybean oil (soyoil) prices rose by around 0.41 percent, reinforcing the upward momentum in palm oil.
Meanwhile, trading activity on the Dalian Commodity Exchange remained suspended due to a public holiday and is scheduled to resume on May 6, keeping market focus centered on Bursa Malaysia.
Also Read: Palm Oil as a Self-Sufficiency Model and Engine of Economic Growth
With strong policy-driven sentiment and supportive trends in competing vegetable oils, CPO prices are expected to maintain their upward momentum in the near term, although global supply-demand dynamics will remain a key factor to watch. (P3)
