CPO Reference Gets Escalated: OF and Levy Would be US$ 118 per Ton in July 2024
01/07/2024 (InfoSAWIT), Jakarta - Reference price of crude palm oil oil ( CPO) to decide out fee (OF) and tariff on Palm Oil Oil Plantation Fund Management Agency (PFMA) or known as levy in July 2024 would be US$ 800,75/metric ton (MT). The numbers got escalated US$ 21,93 or 2,82 percent from June 2024 that were US$ 778,82/MT.
“Now CPO reference price gets escalated and more than the threshold that is US$ 680/MT. referring to the regulation of minister of finance (RMF), the government decided CPO OF would be US$ 33/MT and CPO levy would be US$ 85/MT in July 2024,” General Director of Foreign Trade Ministry of Trade, Budi Santoso said, as in the official statement to InfoSAWIT, Saturday (29/6/2024).
It is also attached in the Decision of Minister of Trade (RMT) Number 803 / 2024 about CPO Reference Price that is Charged on Out Fee and Public Service Obligation Out Fee on PFMA in July 2024. The decision of CPO reference price derived from the average price since on 25 May—24 June 2024 at Indonesian CPO Exchange that reached US$ 761,56/MT, Malaysian Derivatives Exchange that reached US$ 839,93/MT, and Rotterdam that reached US$ 957,77/MT.
Based on RMT Number 46 / 2022, if the average price difference from the three sources would be more than US$ 40, CPO reference price would be calculated by using the average price from the two sources that became the median and the closest sources of the media. Based on the regulation, CPO reference price derived from Malaysia and Indonesia. Based on the calculation, CPO reference price would be US$ 800,75/MT.
Besides, palm cooking oil oil (refined, bleached, and deodorized/RBD palm olein) in branded packs within net ≤ 25 kg should be charged OF US$ 0/MT and the brand lists would be attached in the Decision of Minister of Trade Number 804 / 2024 about Brand Lists of Refined, Bleached, and Deodorized (RBD) Palm Olein in Branded Packs and Packaged with the net ≤ 25 Kg.
CPO OF on 1 July 2024—31 July 2024 referred to Colum Number 4, Attachment Letter C RMK Number 38 / 2024 which is US$ 33/MT. While CPO levy in July 2024 referred to Attachment Letter C RMF Number 103/PMK.05/2022 juncto (jo) Number 154/PMK.05/2022 which is US$ 85/MT. It means, CPO OF and levy in July 2024 would be US$ 118/ton or gets increased from June 2024 which was US$ 93/ton.
“The increasing CPO reference price happened for some factors, such as, the increasing soyoil, crude oil prices, and demands namely from India and China which did not balance with the increasing production,” Budi said. (T2)