CPO Price Increase Influenced by Production Decline During Eid al-Fitr Holiday
Jakarta (ANTARA) - The Ministry of Trade (Kemendag) states that the increase in the reference price (HR) of crude palm oil (CPO) in May 2026 is influenced by the decline in production during the Eid al-Fitr/Lebaran holiday in 2026.
Director General of Foreign Trade at Kemendag, Tommy Andana, said that the HR for CPO used to determine the Export Duty (BK) and Export Levy (PE) for the period 1-31 May 2026 is set at US$1,049.58 per metric tonne (MT). This value is an increase of US$59.95 or 6.06 percent from the HR for CPO in the period 1-30 April 2026, which was recorded at US$989.63 per MT.
“The HR for CPO has risen due to an increase in demand, while production has fallen as a result of the Eid al-Fitr holiday. In addition, the rise in crude oil prices due to the geopolitical situation in the Middle East has also contributed to the increase in the HR for CPO,” said Tommy in a statement in Jakarta on Thursday.
The HR for CPO in May 2026 has risen compared to the previous period. Referring to the applicable Minister of Finance Regulation (PMK), for the May 2026 period, the government imposes a BK on CPO of US$178 per MT and a PE on CPO of 12.5 percent of the HR for CPO in the May 2026 period, namely US$131.1978 per MT.
The determination of the HR for CPO is obtained from the average price for the period 20 March-19 April 2026 on the Indonesian CPO Exchange at US$955.79 per MT, the Malaysian CPO Exchange at US$1,143.37 per MT, and the Rotterdam Port CPO Price at US$1,475.07 per MT.
Referring to Minister of Trade Regulation (Permendag) Number 35 of 2025, if the difference in the average price from the three price sources exceeds US$40, the HR for CPO uses the average from the two price sources that are the median and closest to the median.
“Therefore, the HR for CPO is sourced from the Malaysian CPO Exchange and the Indonesian CPO Exchange. Based on that calculation, the HR for CPO is set at US$1,049.58 per MT,” said Tommy.
Furthermore, branded packaged cooking oil (Refined, Bleached, and Deodorised/RBD palm olein) packaged with a net weight of ≤ 25 kg is subject to a BK of US$48 per MT.
This determination is contained in Minister of Trade Decree (Kepmendag) Number 1029 of 2026 concerning the List of Branded Packaged Refined, Bleached, and Deodorised Palm Olein Packaged with a Net Weight of ≤ 25 Kg.