Palm Oil Prices Fall, Government Sets New Export Duties

The reference price of crude palm oil (CPO) fell by US$12.13 or 1.13 percent from the CPO price for the period December 1-31, 2024, which was recorded at US$1,071.67/MT.

“Currently, the reference price (HR) of CPO has fallen close to the threshold of US$680/MT,” Director General of Foreign Trade of the Ministry of Trade Isy Karim said in a written statement, Wednesday (1/1/2025).

For this reason, referring to the current Minister of Finance Regulation (PMK), the government imposed a CPO export duty of 178 US dollars / MT.

“There is also a CPO export levy of 7.5 percent of the CPO reference price for the period 1-31 January 2025, which is 79.4653 US dollars / MT for the period 1-31 January 2025,” Isy said.

Isy said the decline in the CPO HR was due to several factors, including the imbalance between production and global CPO demand, the price of other vegetable oils, and the exchange rate of the rupiah against the US dollar.

The price determination is stated in the Decree of the Minister of Trade (Kepmendag) Number 1685 of 2024 on the Reference Price of Crude Palm Oil Subject to Export Duty and General Service Tariff of the Palm Oil Plantation Fund Management Agency for the period 1-31 January 2025.

The price sources for the determination of the CPO HR were obtained from the average prices during the period November 25-December 24, 2024 on the CPO exchange in Indonesia at US$984.61/MT, the CPO exchange in Malaysia at US$1,134.47/MT, and the Rotterdam CPO auction market at US$1,299.10/MT.

Based on Regulation of the Minister of Trade (Permendag) No. 46 of 2022, if there is a difference in the average price of three price sources of more than US$40, the calculation of the CPO HR uses the average of the two price sources which become the median and the price source closest to the median.

“Thus, the reference price is sourced from the CPO exchange in Malaysia and the CPO exchange in Indonesia. In accordance with these calculations, the CPO HR was set at 1,059.54 US dollars/MT,” Isy said.

In addition, Refined, Bleached, and Deodorized or RBD palm olein cooking oil in branded and packaged containers with a net weight of ? 25 kilograms is subject to BK of USD 48/MT.

This is stated in Decree of the Minister of Trade Number 1686 of 2024 concerning List of Brands of Refined, Bleached, and Deodorized (RBD) Palm Olein in Branded and Packaged Packages with a Net Weight of 25 kilograms.

Meanwhile, the HR of cocoa beans for January 2025 was set at USD 10,549.59/MT, an increase of USD 2,813.63 or 36.37 percent from the previous month.

This has an impact on increasing the Export Benchmark Price (HPE) of cocoa beans in January 2025 to USD 10,060/MT, an increase of USD 2,743 or 37.48 percent from the previous period.

Source :
-https://money.kompas.com/read/2025/01/02/080000626/harga-minyak-kelapa-sawit-turun-pemerintah-tetapkan-bea-keluar-baru
-https://www.health.harvard.edu/staying-healthy/by-the-way-doctor-is-palm-oil-good-for-you