Demand from India Plummets, June 2026 Palm Oil Reference Price Falls

JAKARTA - The reference price (HR) for crude palm oil (CPO) for setting export duties (BK) and the levy for the Badan Layanan Umum Badan Pengelola Dana Perkebunan (BLU BPDP), commonly referred to as the export levy (PE), for the period 1-30 June 2026, has been set at US$1,029.51 per tonne (MT). Director General of Foreign Trade at the Ministry of Trade Tommy Andana said the figure fell by US$20.07, or 1.91%, from the May 2026 CPO reference price of US$1,049.58 per tonne. ‘The June 2026 CPO reference price decreased compared to May due to lower demand from major importers such as India. Under the applicable Ministry of Finance Regulation (PMK), the government imposed a CPO export duty (BK) of US$148 per tonne and an export levy (PE) of 12.5% of the June HR, amounting to US$128.6892 per tonne for June,’ he stated in a written statement on Saturday, 30 May 2026. The CPO reference price was calculated from the average prices between 20 April and 19 May 2026: Indonesian CPO Exchange at US$920.80 per tonne, Malaysian CPO Exchange at US$1,138.22 per tonne, and Rotterdam Port CPO price at US$1,429.40 per tonne. According to Ministry of Trade Regulation (Permendag) No. 35 of 2025, if the average price difference among the three sources exceeds US$40, the CPO reference price is calculated using the average of the two sources closest to the median. Thus, the CPO reference price is based on the Malaysian and Indonesian CPO Exchanges. Based on this calculation, the CPO reference price was set at US$1,029.51 per tonne. Furthermore, branded packaged refined, bleached, and deodorized (RBD) palm olein with a net weight of 25 kg or more will be subject to an export duty (BK) of US$33 per tonne. This is stipulated in the Ministry of Trade Decision (Kepmendag) No. 1415 of 2026 concerning the List of Branded Packaged Refined, Bleached, and Deodorized Palm Olein with a Net Weight of 25 kg or More. Meanwhile, the June 2026 reference price for cocoa beans was set at US$3,832.17 per tonne, an increase of US$563.48 or 17.24% from the previous period. Consequently, the cocoa bean export benchmark price (HPE) for June 2026 stood at US$3,511 per tonne, up by US$549 or 18.53% from the prior period. ‘The rise in cocoa reference and benchmark prices is due to the closure of the Strait of Hormuz, which increased logistics, insurance, and fuel costs. Additionally, reduced supply from Nigeria has further driven up cocoa HR and HPE,’ Tommy said. The June 2026 cocoa export duty (BK) is set at 7.5% according to ‘Column 4, Appendix B of Ministry of Finance Regulation No. 38 of 2024 in conjunction with Regulation No. 68 of 2025’. The cocoa export levy (PE) for the same period is set at 7.5% based on ‘Appendix C of Ministry of Finance Regulation No. 69 of 2025 in conjunction with Regulation No. 9 of 2026’.