Indonesia’s domestic CPO market strengthened by more than 1% on Thursday, while Malaysian palm oil futures climbed to their highest intraday level since December 2024, supported by biodiesel demand and growing concerns over global supply.
PALMOILMAGAZINE, JAKARTA — Crude palm oil (CPO) prices at PT Kharisma Pemasaran Bersama Nusantara (KPBN) Inacom strengthened on Thursday, August 20, 2026, with the Franco Dumai price set at IDR 15,925/kg.
The price increased by IDR 170/kg, or approximately 1.08%, compared with the highest bid recorded on Wednesday, August 19, 2026, when CPO reached IDR 15,755/kg.
Also Read: KPBN Inacom CPO Prices Withdraw as Malaysian Palm Oil Futures Close Higher
According to information obtained by PalmOilMagazine from KPBN, CPO prices on Thursday were set at IDR 15,925/kg for Franco Dumai, IDR 15,675/kg for FOB Talang Duku, and IDR 15,725/kg for Franco Teluk Bayur.
Meanwhile, the price for FOB Palembang was recorded at IDR 15,700/kg.
Several other tenders ended in withdrawal (WD). At Loco PKS Kembayan, the highest offer reached IDR 15,350/kg, while the tender was withdrawn. Similarly, the highest bid at Loco PKS Parindu reached IDR 15,450/kg, while the tender was withdrawn, with the highest offer at Loco PKS Ngabang also reaching IDR 15,450/kg before being withdrawn.
Also Read: Malaysian CPO Futures Rise, February 2027 Contract Tops RM5,000 per Tonne
The domestic price increase came as Malaysian palm oil futures continued to strengthen, reaching their highest intraday level in around 20 months.
According to Bloomberg, palm oil futures on Bursa Malaysia Derivatives rose by as much as 1.7% to RM4,977 per metric ton during Thursday’s trading, marking their highest intraday level since December 2024.
The rally has been supported by expectations of stronger demand from the biofuel sector, particularly following Indonesia’s implementation of the B50 biodiesel program, as well as growing concerns that stronger El Niño conditions could disrupt palm oil production.
Also Read: Indonesia Sets August Biodiesel Market Index Price at IDR14,924 per Liter
Market participants are increasingly factoring in the possibility of tighter global palm oil supplies. Indonesia, the world’s largest palm oil producer, is expanding domestic CPO consumption through its mandatory B50 biodiesel policy.
The policy is expected to direct a larger share of Indonesia’s palm oil supply toward the domestic energy sector, potentially reducing the volume available for export markets and adding further support to global palm oil prices. (P2)
