InfoSAWIT, JAKARTA — The government has officially set the Reference Price (HR) for crude palm oil (CPO) for the period of August 2025 at US$ 910.91 per metric ton (MT). This figure represents an increase of US$ 33.02 or approximately 3.76 percent compared to the previous month's HR, which was recorded at US$ 877.89/MT.
The increase in HR is stated in the Minister of Trade's Decree (Kepmendag) No. 1694 of 2025 regarding the Reference Price of CPO, which serves as the basis for the imposition of Export Duties (BK) and service tariffs of the Palm Oil Plantation Fund Management Agency (BPDPKS), commonly known as Export Levies (PE). This policy is effective from August 1 to August 31, 2025.
With the HR above the threshold of US$ 680/MT, the government imposes a CPO export duty of US$ 74/MT, referring to Column 6 of Appendix C in the Minister of Finance Regulation (PMK) No. 38 of 2024. Meanwhile, the CPO export levy is set at 10 percent of the HR, amounting to US$ 91.09/MT, in accordance with Appendix I of PMK No. 30 of 2025.
“The CPO HR this month has increased due to rising global demand, particularly from India and China, which has not been matched by an increase in production,” said the Acting Director General of Foreign Trade at the Ministry of Trade, Tommy Andana, in an official statement received by InfoSAWIT on Thursday (July 31, 2025).
Tommy explained that the determination of the CPO HR is based on the average prices in three main markets during the period from June 25 to July 24, 2025, namely, the Indonesian CPO Exchange: US$ 857.24/MT; the Malaysian CPO Exchange: US$ 964.59/MT; and the Rotterdam Port Price: US$ 1,179.79/MT.
Referring to the Minister of Trade Regulation No. 46 of 2022, if the difference between these three prices exceeds US$ 40, the HR is calculated based on the two median prices that are closest. In this case, the prices from the Indonesian and Malaysian CPO exchanges were used, resulting in a final figure of US$ 910.91/MT.
Meanwhile, for branded packaged cooking oil (RBD palm olein) weighing 25 kg or less, the government continues to set the export duty at US$ 0/MT. This determination refers to the Minister of Trade's Decree No. 1695 of 2025, which contains a list of brands that meet the criteria.
With the continuously evolving global market dynamics, the government reaffirms its commitment to maintaining a balance between state revenue from exports and the sustainability of the national palm oil industry. (T2)
