PALMOILMAGAZINE, JAKARTA – Indonesia’s domestic crude palm oil (CPO) market extended its gains on Friday (June 26, 2026), supported by improving global sentiment after the government confirmed that the mandatory B50 biodiesel program will take effect on July 1.
Results from PT Kharisma Pemasaran Bersama Nusantara (KPBN) showed that CPO was priced at IDR 15,575 per kilogram, representing an increase of IDR 225 per kilogram, or approximately 1.47%, compared with IDR 15,350 per kilogram recorded on Thursday (June 25).
According to information obtained by Palmoilmagazine.com from KPBN, Franco Dumai CPO was set at IDR 15,575 per kilogram, while FOB Talang Duku CPO was priced at IDR 15,375 per kilogram.
Also Read: Indonesia Accelerates B50 Rollout as Cross-Sector Testing Advances Ahead of July Launch
Meanwhile, the Loco Parindo CPO tender, which opened at IDR 15,225 per kilogram, ended in a withdrawal (WD). The highest bid submitted reached only IDR 14,973 per kilogram, remaining below sellers’ expectations.
For palm kernel (PK), the Loco PKS Sawit Seberang price was recorded at IDR 12,820 per kilogram.
The improvement in domestic prices coincided with stronger performance in the Malaysian derivatives market. The benchmark September 2026 CPO futures contract on Bursa Malaysia Derivatives rose RM40 per metric ton, or about 0.88%, to RM4,597 per ton during midday trading.
Also Read: Indonesia to Launch B50 in July as Prabowo Pushes Palm Oil-Led Energy Transition
According to Reuters, the market received support from Indonesia’s decision to proceed with the B50 biodiesel mandate beginning in July. The policy is expected to increase domestic palm oil consumption and potentially reduce export availability, tightening global supply conditions.
Despite Friday’s gains, Malaysian palm oil futures still posted a weekly decline of approximately 1.05%, reflecting earlier market weakness during previous trading sessions.
Indonesia officially issued the B50 implementation regulation on Thursday (June 25). The regulation stipulates that the 50% biodiesel blending mandate will become effective on July 1, 2026, while allowing a three-month transition period for fuel distributors to clear existing biodiesel inventories.
Also Read: Aceh Sets FFB Prices Up to IDR 3,537/Kg for Late June Period
Apart from Indonesia’s domestic policy, stronger export demand from Malaysia also contributed to the market rally.
Independent inspection company AmSpec Agri Malaysia reported that Malaysian palm oil exports during June 1–25 increased by approximately 11.1% compared with the same period in the previous month.
Meanwhile, Intertek Testing Services recorded a 10.6% increase in exports during the same period, indicating that global demand for palm oil remained resilient toward the end of June.
Also Read: Riau Independent Smallholder FFB Prices Rise by IDR 11.28/kg for June 24–30, 2026 Period
In other vegetable oil markets, the most active soybean oil contract on the Dalian Commodity Exchange gained approximately 0.81%, while Dalian palm oil futures rose 1.22%.
By contrast, soybean oil futures on the Chicago Board of Trade (CBOT) fell about 0.73%, reflecting mixed sentiment across the global vegetable oil complex.
The combination of Indonesia’s B50 implementation, improving Malaysian exports, and stronger vegetable oil markets across Asia has provided positive momentum for the palm oil sector. Market participants are now closely monitoring how the biodiesel policy will influence CPO demand in the months ahead. (P3)
