InfoSAWIT, JAKARTA – Indonesian crude palm oil (CPO) prices traded through state-owned marketing agency PT Kharisma Pemasaran Bersama Nusantara (KPBN Inacom) moved sharply higher on Tuesday, May 5, 2026, in line with the continued rally in Malaysian palm oil futures, which climbed to their highest level in four weeks amid stronger bullish sentiment in the global vegetable oils market.

KPBN set its CPO reference price at Rp15,625 per kilogram on Tuesday, marking an increase of Rp225/kg, or approximately 1.46%, compared with Monday’s level of Rp15,400/kg. The gain reflects improving sentiment in both domestic and international palm oil markets, supported by stronger futures prices and expectations of rising palm oil demand.

According to trading information obtained by InfoSAWIT from KPBN, Franco Dumai CPO was set at Rp15,625/kg. Meanwhile, Loco Parindu opened at Rp15,175/kg, but the tender was withdrawn, with the highest bid recorded at Rp15,100/kg. Similarly, Loco Kembayan opened at Rp15,275/kg, but was also withdrawn after the highest offer reached Rp15,075/kg. At Loco Ngabang, the opening price stood at Rp15,275/kg, with the highest bid recorded at Rp15,260/kg before withdrawal.

The upward movement in Indonesia’s physical palm oil market came as benchmark futures on Bursa Malaysia Derivatives continued their strong advance. According to Reuters, the benchmark July 2026 palm oil contract surged RM88 per metric ton, or 1.9%, to RM4,710 per metric ton on Tuesday, its highest closing level since April 7.

The rally has been largely driven by optimism surrounding Malaysia’s planned rollout of its B15 biodiesel program, which will introduce a 15% palm oil blend in diesel fuel beginning in June. Market participants expect the policy to significantly boost domestic palm oil consumption in Malaysia while strengthening long-term demand fundamentals for the commodity.

Additional support also came from rival edible oil markets. Soyoil futures on the Chicago Board of Trade rose 0.41%, reinforcing bullish momentum across the vegetable oils complex. Meanwhile, trading at the Dalian Commodity Exchange remained closed for a public holiday and is scheduled to resume on May 6.

With Malaysian futures maintaining strong upward momentum and domestic tender prices moving higher, Indonesia’s palm oil market is expected to remain well supported in the near term, particularly as traders monitor export demand, production trends, and developments in biodiesel policies across major producing nations.

KPBN Tender Results (Rp/kg, excluding VAT) – Tuesday, May 5, 2026

CPO_____

Franco Dumai: Rp15,625 (EUP)

Loco Parindu: Rp15,175 (Withdrawn) – Highest bid: Rp15,100 (EUP)

Loco Kembayan: Rp15,275 (Withdrawn) – Highest bid: Rp15,075 (EUP)

Loco Ngabang: Rp15,275 (Withdrawn) – Highest bid: Rp15,260 (EUP)

CPKO_____

Franco Dumai: Rp33,225 (IBP)

Palembang: Rp32,571 (Withdrawn) – Highest bid: Rp32,475 (IKIN)

Palm Kernel (PK)_____

Franco Belawan: Rp15,525 (MM)

(T2)