InfoSAWIT, JAKARTA – The Indonesian government has set the Crude Palm Oil (CPO) Reference Price (HR) for the period May 1–31, 2026 at US$1,049.58 per metric ton (MT) for the calculation of Export Duty (BK) and the Palm Oil Export Levy (PE) administered by the Public Service Agency for Plantation Fund Management.
The latest reference price marks an increase of US$59.95/MT, or 6.06%, compared with April 2026’s reference price of US$989.63/MT.
Director General of Foreign Trade at Indonesia’s Ministry of Trade, Tommy Andana, said the higher benchmark has triggered an adjustment in export levy calculations for May.
“The May 2026 CPO reference price increased compared to the previous period. Based on the applicable Ministry of Finance regulation, the government imposes a CPO Export Duty of US$178/MT and a Palm Oil Export Levy of 12.5% of the HR, equivalent to US$131.1978/MT,” he explained in an official statement.
Combined, total fiscal charges on CPO exports in May 2026 reach US$309.20/MT.
Tommy noted that the reference price was calculated based on the average price between March 20 and April 19, 2026, using three benchmark sources: Indonesia CPO Exchange at US$955.79/MT, Malaysia CPO Exchange at US$1,143.37/MT, and Rotterdam Port CPO price at US$1,475.07/MT.
Under prevailing regulations, if the gap among the three benchmark averages exceeds US$40, only the two median-nearest sources are used in determining the HR.
“Therefore, the May CPO HR is derived from the Malaysia CPO Exchange and the Indonesia CPO Exchange, resulting in a benchmark of US$1,049.58/MT,” Tommy said.
He added that stronger demand, reduced production during the Eid holiday period, and rising global crude oil prices amid geopolitical tensions in the Middle East were key drivers behind the increase.
Separately, the government also set the Export Duty for branded packaged RBD Palm Olein (maximum 25 kg net weight) at US$48/MT, aimed at balancing export competitiveness, state revenue, and long-term funding sustainability for strategic plantation programs. (T2)
