CPO Price Declines as Global Demand Weakens

The Ministry of Trade (Kemendag) has set the Reference Price (HR) for crude palm oil (CPO) for the July 2026 period at US$1,000.90 per metric ton (MT). This figure represents a decrease of 28.61 US dollars, or 2.78 percent, compared to the June 2026 period, which reached US$1,029.51 per MT. Director General of Foreign Trade at the Ministry of Trade, Tommy Andana, explained that this downward trend was triggered by international market dynamics. “The decline in the CPO HR is influenced by weakening global demand, especially from India as one of the main importing countries, as well as the fall in world crude oil prices which has also depressed vegetable oil prices on the international market,” Tommy stated in an official release in Jakarta on Wednesday (1/7). The decrease in the reference price has a direct impact on the applicable Export Duty (BK) and Export Levy (PE) rates. The HR CPO determination 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 difference in the average price from the three sources exceeds 40 US dollars, the HR determination uses the two price sources that are the median and the one closest to the median. Based on this provision, the calculation of the July 2026 CPO HR used data from the Malaysia CPO Exchange and the Indonesia CPO Exchange. In addition to CPO, the government also set tariffs for derivative cooking oil products. Branded refined, bleached, and deodorized (RBD) palm olein in packages with a net weight of up to 25 kilograms is subject to an export duty of 33 US dollars per MT. The list of brands subject to this tariff is regulated in the Minister of Trade Decree Number 1503 of 2026. This measure was taken to ensure price stability and supply in the domestic market in line with developments in global commodity prices.