InfoSAWIT, JAKARTA – Indonesia's benchmark crude palm oil (CPO) price traded through PT Kharisma Pemasaran Bersama Nusantara (KPBN) strengthened on Friday (June 26), tracking gains in the Malaysian futures market after Indonesia confirmed it will proceed with its nationwide B50 biodiesel mandate next month.
According to market information obtained by InfoSAWIT, KPBN set the CPO reference price at Rp15,575 per kilogram, up Rp225/kg, or approximately 1.47%, from Thursday's level of Rp15,350/kg.
The Franco Dumai quotation was fixed at Rp15,575/kg, while the FOB Talang Duku price reached Rp15,375/kg.
Several spot tenders, however, were withdrawn after buyers failed to meet sellers' asking prices. The highest bids reached Rp14,973/kg for Loco Parindu, Rp14,879/kg for Loco Kembayan, and Rp15,029/kg for Loco Ngabang.
The domestic market followed stronger international sentiment after Malaysian palm oil futures advanced on Friday, supported by confirmation that Indonesia's B50 biodiesel programme will begin on July 1 with a three-month transition period for fuel distributors.
The September benchmark palm oil contract on Bursa Malaysia Derivatives rose RM40, or 0.88%, to RM4,597 per tonne during the midday trading session. Despite Friday's recovery, the contract remained down roughly 1.05% for the week.
Additional support came from export data, with independent surveyor AmSpec Agri Malaysia reporting an 11.1% increase in Malaysian palm oil exports during June 1–25, while Intertek Testing Services estimated shipments were up 10.6% over the same period.
Elsewhere in the vegetable oil market, Dalian's most-active soyoil futures gained 0.81%, while Dalian palm oil futures rose 1.22%. In contrast, soyoil futures on the Chicago Board of Trade declined 0.73%, reflecting mixed sentiment across global edible oil markets.
The improvement in both domestic and international palm oil prices reflects growing expectations that Indonesia's B50 biodiesel programme will significantly increase domestic palm oil consumption while supporting overall market fundamentals heading into the second half of 2026. (T2)
