CPO Price Declines as Global Demand Weakens
The Ministry of Trade (Kemendag) has established the Reference Price (HR) for crude palm oil (CPO) for the July 2026 period at US$1,000.90 per metric tonne (MT). This figure represents a decrease of US$28.61 or 2.78% compared to the June 2026 period, which reached US$1,029.51 per MT.
The Director General of Foreign Trade at the Ministry of Trade, Tommy Andana, explained that this downward trend was triggered by international market dynamics. “The decrease in the CPO reference price is influenced by weakening global demand, especially from India as one of the major importing countries, as well as the decline in global crude oil prices which has also pressured vegetable oil prices in the international market,” Tommy stated in an official briefing in Jakarta on Wednesday (1/7).
This decline in the reference price directly impacts the amount of Export Duty (BK) and Export Levy (PE) applicable. Based on existing regulations, the details of the tariffs for the July 20 Discretionary period are as follows:
The determination of the CPO reference price is based on the average price during the period from 20 May to 19 June 2026 from three main exchange sources. In accordance with Minister of Trade Regulation Number 35 of 2025, if the average price difference from the three sources exceeds US$40, the reference price is determined using two price sources: the median and the one closest to the median. Based on these provisions, the calculation for the July 2026 CPO reference price uses data from the Malaysia CPO Exchange and the Indonesia CPO Exchange.
In addition to CPO, the government has also set tariffs for cooking oil derivative products. Refined, bleached, and deodorised (RBD) palm olein in branded packaging with a maximum net weight of 25 kilograms is subject to an export duty of US$33 per MT. The list of brands affected by these tariffs is regulated under the Decree of the Minister of Trade (Kepmendag) Number 1503 of 2026. This step was taken to ensure price and supply stability in the domestic market alongside developments in global commodity prices.