PALMOILMAGAZINE, JAKARTA – The Indonesian government has set the Reference Price (HR) for crude palm oil (CPO) at USD 1,029.51 per metric ton (MT) for the period of June 1–30, 2026, marking a decline of USD 20.07 per MT, or 1.91%, from the May 2026 reference price of USD 1,049.58 per MT.
The lower reference price serves as the basis for calculating both the Export Duty (BK) and the export levy collected by the Plantation Fund Management Agency (BPDP) throughout June.
Director General of Foreign Trade at Indonesia’s Ministry of Trade, Tommy Andana, said the decline was primarily driven by weaker demand from several key export destinations, particularly India.
Also Read: Indonesia Raises May 2026 CPO Reference Price to USD 1,049.58/MT, Export Duty Set at USD 178
“The June 2026 CPO Reference Price decreased compared to May due to lower demand from major importing countries such as India,” Tommy said in an official statement received by Palmoilmagazine.com on May 28.
Based on prevailing regulations, the government has set the CPO Export Duty at USD 148 per MT. Meanwhile, the export levy is fixed at 12.5% of the reference price, equivalent to USD 128.69 per MT for June 2026.
The export duty structure refers to Ministry of Finance Regulation (PMK) No. 38/2024, as amended by PMK No. 68/2025, while the export levy is regulated under PMK No. 69/2025 in conjunction with PMK No. 9/2026.
Also Read: KPBN CPO Bids Surge 7.7% Despite Withdrawn Tenders, Malaysia Futures End Mixed
To determine the June reference price, the government used average CPO prices recorded between April 20 and May 19, 2026, sourced from three benchmark markets. During the period, the average price at the Indonesian CPO Exchange stood at USD 920.80 per MT, while the Malaysian CPO Exchange averaged USD 1,138.22 per MT and the Rotterdam market reached USD 1,429.40 per MT.
Because the price gap among the three benchmark sources exceeded USD 40 per MT, the calculation followed the methodology stipulated under Minister of Trade Regulation No. 35/2025. Under the regulation, the reference price is determined using the two benchmark prices closest to the median value.
As a result, the government used data from the Indonesian CPO Exchange and the Malaysian CPO Exchange as the basis for calculating the June reference price, which was ultimately set at USD 1,029.51 per MT.
Also Read: Indonesia Eyes Single-Gate CPO Export System to Curb Revenue Leakages
In addition to CPO, the government also established export duty rates for downstream palm oil products. Branded Refined, Bleached, and Deodorized (RBD) Palm Olein packaged in units weighing up to 25 kilograms is subject to an export duty of USD 33 per MT.
The provision is outlined in Minister of Trade Decree No. 1415/2026, which lists eligible branded RBD Palm Olein products packaged in containers of 25 kilograms or less.
Meanwhile, the broader framework governing the June 2026 CPO reference price and export benchmark prices for agricultural and forestry commodities subject to export duties and BPDP service tariffs is stipulated under Minister of Trade Decree No. 1414/2026.
Also Read: Indonesia Calms Palm Oil Market Concerns as Government Protects Farmers and Export Industry
Despite the monthly decline, the reference price remains above the USD 1,000 per MT threshold, indicating that global palm oil prices continue to trade at relatively elevated levels compared with historical averages. The development reflects ongoing shifts in demand among key consuming nations while underscoring the resilience of the global palm oil market. (P3)
