InfoSAWIT, JAKARTA – Indonesia’s domestic crude palm oil (CPO) market strengthened on Thursday, even as benchmark palm oil futures in Malaysia moved lower amid weakness in global energy and vegetable oil markets.

Data from PT Kharisma Pemasaran Bersama Nusantara (KPBN) showed that CPO prices increased to Rp15,335 per kilogram on June 18, 2026, representing a gain of Rp185 per kilogram, or approximately 1.22%, from the previous day’s highest offer price of Rp15,150 per kilogram.

The increase highlights the resilience of Indonesia’s domestic palm oil market despite mixed signals from international commodity exchanges.

Dumai Leads Domestic Gains

According to information obtained by InfoSAWIT from KPBN, the Franco Dumai CPO tender was set at Rp15,335 per kilogram, while FOB Talang Duku reached Rp15,135 per kilogram.

Meanwhile, the FOB Teluk Bayur tender opened at Rp15,205 per kilogram but was later withdrawn, with the highest bid recorded at Rp15,023 per kilogram.

Additional transactions included Loco PKS Parindu at Rp14,985 per kilogram, while no bids were recorded for Loco Luwu.

The domestic market’s positive performance reflects continued demand from processors and exporters, supported by relatively firm global palm oil fundamentals.

Malaysian Market Moves Lower

In contrast, palm oil futures on the Bursa Malaysia Derivatives Exchange (BMD) weakened during Thursday’s trading session.

According to Reuters, the benchmark September 2026 contract fell RM33 per tonne, or 0.72%, to RM4,541 per tonne by midday.

The decline followed weakness in crude oil markets and competing vegetable oils, which often influence palm oil trading sentiment.

China’s Dalian Commodity Exchange reported a 0.47% decline in soybean oil futures and a sharper 0.99% drop in palm oil futures. At the same time, soybean oil futures on the Chicago Board of Trade (CBOT) fell 0.92%.

These movements weighed on investor sentiment as traders assessed prospects for global vegetable oil demand and pricing competitiveness.

Domestic Market Remains Supported

Despite the softer performance in Malaysia, Indonesia’s domestic market continues to benefit from strong export demand and expectations surrounding the implementation of the B50 biodiesel program.

Market participants also note that domestic supply-demand dynamics remain supportive, helping shield local prices from short-term international fluctuations.

Analysts believe Indonesian CPO prices could remain relatively firm in the near term, particularly if export demand stays strong and biodiesel-related consumption continues to expand.

The divergence between KPBN prices and Malaysian futures underscores the growing importance of domestic demand factors in shaping Indonesia’s palm oil market, especially as the country advances its downstream processing and renewable energy strategies. (T2)