InfoSAWIT, JAKARTA – Indonesia has reduced its official reference price for crude palm oil (CPO) for the August 1–31, 2026 period, resulting in lower export duties and export levies as part of the government's ongoing palm oil export management policy.
Director General of Foreign Trade at the Ministry of Trade, Tommy Andana, announced that the August 2026 CPO Reference Price (HR CPO) has been set at US$996.52 per metric ton, down US$4.38, or approximately 0.44 percent, from the July 2026 reference price of US$1,000.90 per metric ton.
Under the applicable regulations, the revised benchmark triggers an export duty of US$148 per metric ton and an export levy equivalent to 12.5 percent of the reference price, amounting to US$124.56 per metric ton. Combined, the total export charges for CPO reach US$272.56 per metric ton.
The export duty is determined under the Ministry of Finance Regulation No. 38/2024, as amended by Regulation No. 68/2025. Meanwhile, the export levy, managed by the Public Service Agency of the Palm Oil Plantation Fund Management Agency (BLU BPDP), follows the provisions of Ministry of Finance Regulation No. 69/2025, as updated through Regulation No. 9/2026.
The Ministry of Trade calculates the monthly CPO reference price based on average market prices recorded between June 20 and July 19, 2026. During that period, average CPO prices reached US$892.96 per metric ton on the Indonesia CPO Exchange, US$1,100.08 per metric ton on the Malaysian exchange, and US$1,509.09 per metric ton at the Port of Rotterdam.
In accordance with Ministry of Trade Regulation No. 35/2025, when the price gap among the three reference markets exceeds US$40, the government calculates the reference price using the two values closest to the median. Applying this methodology, Indonesia used the average prices from the Indonesia CPO Exchange and the Malaysian market, producing the final reference price of US$996.52 per metric ton.
The government also maintained an export duty of US$33 per metric ton for branded refined, bleached, and deodorized (RBD) palm olein packaged in containers of up to 25 kilograms, as stipulated under Minister of Trade Decree No. 1668 of 2026.
According to the Ministry of Trade, the lower August reference price reflects weaker global demand, particularly from India, one of the world's largest palm oil importers. The correction in global crude oil prices has also weighed on vegetable oil markets, including palm oil.
Industry participants expect demand trends in key importing countries, together with developments in global energy markets, to remain major factors influencing palm oil prices during the second half of 2026. (T2)
Source: the Ministry of Trade
