InfoSAWIT, JAKARTA – Crude palm oil (CPO) prices at PT Kharisma Pemasaran Bersama Nusantara (KPBN) strengthened on Thursday, August 20, 2026, with the highest offer reaching Rp15,925 per kilogram.
The price increased by Rp170 per kg, or around 1.08%, compared with the highest offer of Rp15,755 per kg recorded a day earlier.
Based on information obtained by InfoSAWIT from KPBN, CPO traded on a Franco Dumai basis was set at Rp15,925 per kg. Meanwhile, the FOB Talang Duku price stood at Rp15,675 per kg, while Franco Teluk Bayur was priced at Rp15,725 per kg.
The stronger domestic market came as Malaysian palm oil futures continued their upward movement, reaching their highest levels in around 20 months. Rising demand from the biofuel sector, Indonesia's B50 biodiesel programme, and growing concerns over potential production disruptions linked to a strengthening El Niño phenomenon have all contributed to the bullish market sentiment.
According to Bloomberg, Malaysian palm oil futures climbed as much as 1.7% to RM4,977 per tonne during Thursday's trading session, marking the highest intraday level since December 2024.
The rally reflects increasing market expectations of tighter global palm oil supplies. Indonesia, the world's largest palm oil producer, has been absorbing more CPO into its domestic market through the mandatory B50 biodiesel programme.
The policy is expected to direct a larger share of palm oil production toward the energy sector, potentially reducing the volume available for exports and supporting prices in the international market.
KPBN CPO Tender Prices – Thursday, August 20, 2026
Franco Dumai: Rp15,925/kg – CTI
FOB Talang Duku: Rp15,675/kg – AGM
Franco Teluk Bayur: Rp15,725/kg – WIRA
FOB Palembang: Rp15,700/kg – AGM
Loco PKS Kembayan: Rp15,425/kg (withdrawn); highest offer Rp15,350/kg – EUP
Loco PKS Parindu: Rp15,535/kg (withdrawn); highest offer Rp15,450/kg – EUP
Loco PKS Ngabang: Rp15,550/kg (withdrawn); highest offer Rp15,450/kg – EUP
The combination of stronger domestic CPO prices and continued gains in Malaysian palm oil futures highlights the increasingly important role of biodiesel demand and supply concerns in shaping the direction of the palm oil market. (T2)
