Profits Continue as Palm Oil Prices Rise
The Ministry of Trade (Kemendag) states that the increase in the reference price (HR) for crude palm oil (CPO) commodities in May 2026 is influenced by a decline in production during the Eid al-Fitr/Lebaran holiday in 2026.
Director General of Foreign Trade at Kemendag, Tommy Andana, said the CPO HR for determining Export Duty (BK) and Export Levy (PE) for the period 1-31 May 2026 is set at $1,049.58 per metric tonne (MT). This value rises by $59.95 or 6.06% from the CPO HR for the 1-30 April 2026 period, which was recorded at $989.63 per MT.
“The CPO HR is rising due to increased demand, while production has fallen because of the Eid al-Fitr holiday. Additionally, the rise in crude oil prices due to the geopolitical situation in the Middle East is also contributing to the CPO HR increase,” Tommy said in a statement in Jakarta on Thursday (30/4/2026).
The May 2026 CPO HR has increased compared to the previous period. Referring to the applicable Minister of Finance Regulation (PMK), for the May 2026 period, the government imposes a CPO BK of $178 per MT and a CPO PE of 12.5% of the May 2026 CPO HR, namely $131.1978 per MT.
The determination of the CPO HR is obtained from the average price for the period 20 March-19 April 2026 on the Indonesian CPO Exchange at $955.79 per MT, the Malaysian CPO Exchange at $1,143.37 per MT, and the Rotterdam Port CPO Price at $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 $40, the CPO HR uses the average from the two price sources that are the median and closest to the median.
“Thus, the CPO HR is sourced from the Malaysian CPO Exchange and the Indonesian CPO Exchange. Based on that calculation, the CPO HR is set at $1,049.58 per MT,” Tommy said.
Furthermore, branded packaged cooking oil (Refined, Bleached, and Deodorized/RBD palm olein) packaged with a net weight of ≤25 kg is subject to a BK of $48 per MT.
This determination is contained in Minister of Trade Decision (Kepmendag) Number 1029 of 2026 on the List of Branded Packaged Refined, Bleached, and Deodorized Palm Olein with Net Weight ≤25 Kg.