Photo by : Iis Chairun Nisa / Sawitfest2021
Palmoilmagazine, JAKARTA – Reference price of crude palm oil (CPO) to decide Out Fee (OF) in May 2022 is US$ 1.657,39/metric ton (MT). It gets decreasing US$ 130,11 or about 7,28% from April 2022, which was US$ 1.787,50/MT. It is listed in Regulation of Minister of Trade Number 21 / 2022 about Export Reference Price on Agriculture and Forestry Products that got Out Fee.
“Now CPO reference price surpasses the threshold- US$ 750/MT. The government decided CPO OF is US$ 200/MT in May 2022,” General Director in duty of Foreign Trade, Ministry of Trade, Veri Anggrijono said, as in the official statement to Palmoilmagazine, Friday (29/4/2022).
CPO OF in May 2022 refers to Colom 12, Attachment I, C Regulation of Minister of Finance Number 1/PMK.010/2022 which is USD 200/MT. The numbers are the same with CPO OF in April 2022.
Ministry of Trade thought, the decreasing CPO reference price happened for the revocation of Domestic Market Obligation and Domestic Price Obligation by Indonesia. But it was not significant because there were geopolitics factors too, such as, Russian invasion to Ukraine which still happens, and the lockdown in Shanghai China that triggers the economic recovery in the world.
CPO export citation that Palm Oil Plantation Fund Management Agency (PFMA) manages according to Regulation of Minister of Finance Number 23 /PMK.05/2022, in May 2022, and CPO reference price that Ministry of Trade decided, is categorized to be more than US$ 1.500/MT, which CPO export citation reached US$ 375/MT.
It means in April 2022, if the both combined between CPO OF and Citation, it reached US$ 575/MT. Based on what Palmoilmagazine calculated, the two taxes cut off CPO price about 35%. (T2)