CPO from Malaysia Gets More Expensive for The Levy Has no Change

Foto by Hendra/sawitfest 2021
CPO from Malaysia Gets More Expensive for The Levy Has no Change

InfoSAWIT, KUALA LUMPUR – After Malaysia Palm Oil Board (MPOB) decided to maintain export levy for 8% and crude palm oil (CPO) reference price also gets more expensive in the country, the importer countries should purchase CPO more expensive from Malaysia.

MPOB escalated CPO reference price up to RM 126 to be RM 4,033,51 per ton in October 2022, from RM 3,907,51 in September 2022.

In the reverse, Ministry of Trade Indonesian Republic decided that CPO reference price on 16 - 30 September 2022 to be US$ 846,32 (RM 3,837.45) per ton, or gets cheaper from US$ 929,66 for the first semester this month. The CPO Out Fee in Indonesia is US$ 52/ton in September.

One founder of Palm Oil Analytics in Singapore, Sathia Varqa said, CPO reference price that MPOB recently decided within 8% levy, added by the policy published by Indonesia not to get CPO levy which will be available until 31 October 2022, would decrease CPO demands from Malaysia.

Sathia Varqa thought, CPO price would always be more expensive but the gap could be more and more. Indonesia decided to get CPO reference price cheaper on 16 - 30 September while Malaysia escalated the reference price.

“The CPO tax in Indonesia gets cheaper, incoming tax in Malaysia gets more expensive. It means, Malaysia needs to make CPO cheaper to compete with CPO price from Indonesia which is now cheaper,” Varqa said, as InfoSAWIT quoted from The Edge Malaysia. (T2)