Trade Ministry: Weak global demand causes CPO price decline
The Ministry of Trade has stated that weakening global demand caused the reference price for crude palm oil (CPO) to fall in July 2026. Director General of Foreign Trade Tommy Andana said the CPO reference price for determining export duties and export levies for the July 2026 period is USD 1,000.90 per metric ton (MT), down USD 28.61 or 2.78 per cent compared to the June 2026 CPO reference price of USD 1,029.51 per MT. “The decline in the CPO reference price was influenced by weakening global demand, especially from India as one of the main importing countries, as well as the decline in world crude oil prices which also depressed vegetable oil prices on the international market,” Tommy said in a statement in Jakarta on Wednesday. Tommy noted that the decline in the CPO reference price reflects price developments in the global market, which serve as the benchmark for setting export duties and levies. The service tariff for the Oil Palm Plantation Fund Management Agency or CPO export levy is set at 12.5 per cent of the CPO reference price, equivalent to USD 125.11 per MT, referring to Attachment Letter A of Minister of Finance Regulation Number 69 of 2025 in conjunction with Minister of Finance Regulation Number 9 of 2026. The determination of the CPO reference price is based on the average price for the period 20 May to 19 June 2026, sourced from the Indonesia CPO Exchange at USD 890.84 per MT, the Malaysia CPO Exchange at USD 1,110.97 per MT, and the Rotterdam CPO price at USD 1,468.28 per MT. In accordance with Minister of Trade Regulation Number 35 of 2025, if the difference in the average price from the three sources exceeds USD 40, the reference price is determined using the two price sources that are the median and the one closest to the median. Meanwhile, branded packaged refined, bleached, and deodorised (RBD) palm olein products with a net weight of up to 25 kilograms are subject to an export duty of USD 33 per MT. The list of brands subject to this tariff is stipulated through Minister of Trade Decree Number 1503 of 2026.