The lower benchmark reflects softer global demand and weaker crude oil prices, prompting adjustments to Indonesia’s palm oil export charges for August.
PALMOILMAGAZINE, Jakarta, Indonesia — Indonesia’s Ministry of Trade has lowered the Crude Palm Oil (CPO) Reference Price (HR) for August 1–31, 2026 to USD 996.52 per metric ton (MT), down USD 4.38, or 0.44%, from USD 1,000.90/MT in July.
According to an official statement from the Ministry of Trade obtained by PalmOilMagazine on Friday (July 31), the lower reference price serves as the basis for adjusting Indonesia’s Export Duty (BK) and Export Levy (PE) imposed on palm oil exports through the Public Service Agency of the Plantation Fund Management Agency (BLU BPDP).
In line with the revised reference price, the government set the CPO export duty at USD 148/MT for August, in accordance with Minister of Finance Regulation (PMK) No. 38/2024, as amended by PMK No. 68/2025. Meanwhile, the export levy remains at 12.5% of the reference price, equivalent to USD 124.56/MT, under PMK No. 69/2025, as amended by PMK No. 9/2026.
Also Read: Indonesia Cuts July 2026 CPO Reference Price to USD 1,000.90 per Ton Amid Weak Global Demand
Director General of Foreign Trade Tommy Andana said the decline in the August reference price automatically triggered adjustments to the export duty and levy under the prevailing regulations.
“The August 2026 CPO Reference Price is lower than the previous period. In accordance with existing regulations, the export duty has been set at USD 148 per metric ton, while the export levy is fixed at 12.5% of the reference price, equivalent to USD 124.56 per metric ton,” Tommy said.
The August reference price was calculated using the average CPO prices recorded between June 20 and July 19, 2026, including USD 892.96/MT on the Indonesia CPO Exchange, USD 1,100.08/MT on the Malaysia CPO Exchange, and USD 1,509.09/MT at the Port of Rotterdam.
Also Read: Indonesia Sets June CPO Reference Price at USD 1,029.51/MT Amid Softer Global Demand
Under PMK No. 35/2025, if the price difference among the three reference sources exceeds USD 40, the government determines the reference price using the median price and the closest value to the median. As a result, the August reference price was derived from the average prices on the Indonesia and Malaysia CPO exchanges, producing a final benchmark of USD 996.52/MT.
In addition to CPO, the government maintained an export duty of USD 33/MT for Refined, Bleached and Deodorized (RBD) Palm Olein sold in branded retail packages weighing up to 25 kilograms, as stipulated in Minister of Trade Decree No. 1668/2026.
According to Tommy, the decline in the August reference price was driven by weaker global demand, particularly from India, one of the world’s largest palm oil importers, as well as lower international crude oil prices, both of which weighed on the global vegetable oil market.
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The updated reference price was formalized under Minister of Trade Decree No. 1667/2026, which sets Indonesia’s export benchmark and reference prices for agricultural and forestry products subject to export duties and public service agency tariffs. (P3)
