InfoSAWIT, JAKARTA – The government has once again raised the reference price for crude palm oil (CPO) for the period of September 1–30, 2025, to US$954.71 per metric ton (MT). This figure is a 4.81% increase, or US$43.80, compared to last month's price of US$910.91/MT.
The latest CPO reference price is stipulated in Minister of Trade Decree No. 1845 of 2025. With this price surge, the Ministry of Trade has set the CPO export duty (BK) at US$124/MT and the export levy (PE) at 10% of the reference price, equivalent to US$95.47/MT.
"The CPO reference price continues to move away from the US$680/MT threshold. In accordance with the applicable PMK regulations, the government is imposing the BK and PE at that level for the September period," said Acting Director-General of Foreign Trade at the Ministry of Trade, Tommy Andana, in an official statement received by InfoSAWIT on Monday (9/1/2025).
The CPO reference price calculation is based on the average CPO price in three major markets from July 25–August 24, 2025: the Indonesian CPO Exchange at US$895.72/MT, the Malaysian Exchange at US$1,013.70/MT, and the Rotterdam port price at US$1,240.12/MT. According to Minister of Trade Regulation No. 46 of 2022, when the price difference between the three sources exceeds US40, the reference price Is calculated from the two prices closest to the median. As a result, the reference price was derived from the Indonesian and Malaysian exchanges, setting at US954.71/MT.
In addition to CPO, the government has also set export tariffs for branded packaged palm cooking oil (Refined, Bleached, and Deodorized/RBD palm olein) weighing ≤ 25 kg. This product is subject to a BK of US$31/MT, as stated in Minister of Trade Decree No. 1846 of 2025, which includes a list of registered brands.
The Ministry of Trade noted that the strengthening of global CPO prices is influenced by increasing demand from India, the planned implementation of Indonesia's mandatory B50 biodiesel program, and rising prices for other vegetable oils. Soyoil prices have been pushed up by the U.S. biodiesel policy, which has increased domestic consumption, as well as China's plan to impose anti-dumping duties on imported Canadian canola oil.
This increase in the CPO reference price sends a positive signal to the palm oil industry but also increases the export levies that exporters must bear. For the global market, the strengthening price trend is expected to continue amid tight global vegetable oil supplies. (T2)
