PALMOILMAGAZINE, JAKARTA — Indonesia’s domestic crude palm oil (CPO) price increased on Monday (June 29, 2026), tracking continued gains in Malaysian palm oil futures as stronger export performance and optimism surrounding Indonesia’s B50 biodiesel mandate supported market sentiment.
According to data obtained by Palmoilmagazine.com from PT Kharisma Pemasaran Bersama Nusantara (KPBN), the domestic CPO reference price was set at IDR 15,685 per kilogram, representing an increase of IDR 110 per kilogram, or approximately 0.71%, compared with IDR 15,575 per kilogram recorded on Friday.
For Franco Dumai deliveries, CPO was priced at IDR 15,685 per kilogram, while the FOB Talang Duku price stood at IDR 15,485 per kilogram.
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Meanwhile, the Franco Teluk Bayur tender opened at IDR 15,555 per kilogram but ended in a withdrawal after the highest bid reached only IDR 14,300 per kilogram.
In the local market, the Loco PKS Parindu tender was also withdrawn from the market at an indicative price of IDR 15,335 per kilogram after the highest offer reached IDR 14,951 per kilogram. Likewise, Loco PKS Kembayan was offered at IDR 15,235 per kilogram but was withdrawn when the highest bid reached only IDR 14,851 per kilogram.
The domestic market strength mirrored developments on the Bursa Malaysia Derivatives Exchange, where crude palm oil futures closed higher for a second consecutive trading session.
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The benchmark September 2026 CPO contract gained RM21 per metric ton, or 0.46%, to settle at RM4,589 per ton, equivalent to approximately US$1,128.91 per ton.
The Malaysian market continued to receive support from stronger export performance. Cargo survey data showed that Malaysian palm oil product exports during June 1–25 increased between 10.6% and 11.1% compared with the same period in the previous month.
Market participants also continued to monitor Indonesia’s mandatory B50 biodiesel program, which is scheduled to take effect on July 1, 2026. The policy is expected to boost domestic palm oil consumption and provide additional support to global CPO demand.
Positive sentiment was also evident across other vegetable oil markets. The most active soybean oil contract on the Dalian Commodity Exchange rose 0.65%, while palm oil futures on the same exchange advanced 1.26%.
In the United States, soybean oil prices on the Chicago Board of Trade (CBOT) climbed 0.49%, adding further support to the global vegetable oil complex.
Market analysts believe that stronger exports, the implementation of Indonesia’s B50 biodiesel mandate, and gains in competing vegetable oils could continue to underpin positive sentiment in the palm oil market in the near term. However, investors remain attentive to global demand conditions and the release of Malaysia’s full June export data, which could influence market direction in the coming days. (P3)
