PALMOILMAGAZINE, JAKARTA – Indonesia’s domestic crude palm oil (CPO) market started the week on a stronger note, with prices at state-run marketing agency PT Kharisma Pemasaran Bersama Nusantara (KPBN) climbing in line with gains in the global vegetable oil market.
On Monday (July 20, 2026), KPBN set the domestic CPO reference price at IDR 15,777 per kilogram, an increase of IDR 77/kg, or approximately 0.49%, compared with IDR 15,700/kg recorded on Friday (July 17).
The domestic price increase mirrored the rally in Bursa Malaysia Derivatives (BMD), where benchmark CPO futures were supported by higher crude oil prices, stronger vegetable oil markets in China, and renewed concerns that El Niño could disrupt palm oil production in major producing countries.
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According to KPBN tender data, Franco Belawan CPO was priced at IDR 15,777/kg, while FOB Talang Duku stood at IDR 15,577/kg. Meanwhile, the FOB Boom Baru, Palembang tender opened at IDR 15,627/kg but ended in withdraw (WD), with the highest bid reaching IDR 15,557/kg.
In the international market, the benchmark October CPO futures contract on Bursa Malaysia gained RM39 per metric ton, or about 0.85%, to RM4,636 per ton during the midday trading session. The advance extended last week’s positive momentum, supported by rising global energy prices and broad-based gains across major vegetable oil markets.
China also contributed to the bullish sentiment. The most active soybean oil futures on the Dalian Commodity Exchange rose 0.51%, while palm oil futures climbed 1.16%. In the United States, soybean oil futures on the Chicago Board of Trade (CBOT) edged up 0.06%, reinforcing optimism across the edible oils complex.
Beyond stronger energy and vegetable oil markets, traders are increasingly monitoring the potential return of El Niño, which could reduce rainfall across Southeast Asia and curb palm oil production in key producers such as Indonesia and Malaysia if dry weather persists.
With supportive global fundamentals, CPO prices are expected to remain firm in the near term. However, market direction will continue to depend on export demand, movements in crude oil prices, and weather conditions affecting palm oil production across the region.
KPBN CPO Tender Prices (Excluding VAT) – Monday, July 20, 2026
- Franco Dumai: IDR 15,777/kg (EUP)
- FOB Talang Duku: IDR 15,577/kg (EUP)
- FOB Boom Baru, Palembang: IDR 15,627/kg (Withdraw); highest bid IDR 15,557/kg (PSCOI)
- FOB IPP Pagun/Parba, West Kalimantan: IDR 15,427/kg (EUP)
- Loco PKS Parindu & Ngabang: IDR 15,427/kg (EUP)
- Loco PKS Kembayan: IDR 15,327/kg (EUP)
(P2)
