02.03.2023 (Tempo) - TEMPO.CO, Jakarta - The Indonesian Trade Ministry announced that the reference price for crude palm oil (CPO) products (March 1-15) had increased to US$889.77 per metric ton, which is an increase of US$9.74 (1.11 percent) compared to the previous period.

According to Foreign Trade Director General Budi Santoso, the rise in CPO reference prices is affected by a number of domestic and international aspects. 

"There is a decrease in world supply due to changes in Indonesia's mandatory biodiesel policy, which was originally B30 to B35," Budi announced in a statement on March 1. 

According to him, another cause is the crisis conditions in Argentina which is one of the world's palm oil-producing countries. The increase in the prices of other vegetable oils, especially soybeans, and the increase in the exchange rate of the Malaysian Ringgit against the US dollar also pushed up CPO prices.

Budi explained that the current CPO reference price is veering away from the threshold of US$ 680 per metric ton mentioned under the Trade Ministry’s Decree No.542 of 2023. 

In addition, cooking oil (refined, bleached, and deodorized or RBD palm olein) in branded packaging and packed with a net weight of 25 kilograms is not subject to export duties by establishing a brand as stated in the Decree of the Minister of Trade No.543 of 2023 concerning List of Refined Brands, Bleached, and Deodorized (RBD) Palm Olein in Branded Packages and Packed with a Net Weight of 25 KG.

https://en.tempo.co/read/1697669/b35-policy-contributes-to-rise-in-cpo-reference-prices