31/05/2025 (VOI Indonesia) - The Ministry of Trade (Kemendag) said the decline in reference prices (HR) for palm oil or crude palm oil (CPO) was influenced by increased production in Malaysia and decreased demand from India.

HR CPO for the determination of Feature Exit (BK) and Export Levy (PE) for the period of June 2025 was 856.38 US dollars per MT. This value decreased by 68.08 US dollars or 7.36 percent from the May 2025 period which was recorded at 924.46 US dollars per MT.

"HR CPO's decline was influenced by several factors, including increased production in Malaysia, projected decline in demand from India as the main consumer country, and increased the value of the United States dollar," said Plt. Director General of Foreign Trade of the Ministry of Trade Isy Karim quoting Antara.

Isy said, HR CPO fell close to the threshold of US$680 per MT. For this reason, referring to the current Minister of Finance Regulation (PMK), the government imposed a BK CPO of 52 US dollars per MT and a CPO PE of 10 percent of HR CPO for the June 2025 period, which amounted to 85.6384 US dollars per MT for the period of June 2025.

The determination of the HR CPO sourced from the average price during the period 25 April-24 May 2025 on the CPO Exchange in Indonesia amounting to 804.50 US dollars per MT, the CPO Exchange in Malaysia amounted to 908.27 US dollars per MT, and the Port CPO Rotterdam Price was 1,132.90 US dollars per MT. According to this calculation, HR CPO was set at 856.38 US dollars per MT.

In addition, cooking oil (refined, bleached, and deodorized/RBD palm olein) in branded and packaged with net 25 kilograms is subject to BK 0 US dollars per MT with the determination of the brand as stated in the Minister of Trade Decree No. 1485 of 2025 concerning the List of Refined, Bleached, and Deodorized (RBD) Palm Olein Brands in Branded Packaging and Packed with a Weight of Netto 25 kilograms.

https://voi.id/en/economy/485792