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CPO OF and Levy Would be USS 93 per Ton on 16 - 31 January 2024

Doc. InfoSAWIT
CPO OF and Levy Would be USS 93 per Ton on 16 - 31 January 2024

InfoSAWIT, JAKARTA – Crude palm oil (CPO) reference price to decide out fee (OF) and tariff in Palm Oil Plantation Fund Management Agency (PFMA) or known as export levy on 16–31 January 2024 would be US$ 774,93/metric ton (MT). The numbers increase US$ 28,24 or 3,78 percent from on 1–15 January 2024 that was USD 746,69/MT.

It was written on the Decision of Minister of Trade Number 25 / 2024 about Crude Palm Oil Reference Price that is charged by Out Fee and Service Tariff in PGMA on 16-31 January 2024.

The sources of CPO reference price were from the average price on 25 December 2023 — 9 January 2024 at Indonesia CPO Exchange that was US$ 755,98/MT, Malaysia Derivatives Exchange which was US$  793,87/MT, and CPO Rotterdam  that was US$  849,16/MT. Based on the Regulation of Minister of Trade Number 46 / 2022, if there are different average price from the three sources that reached more than US$ 40, CPO reference price to be would be the average price from two sources that became the median and the closest sources from the median price. It means, the reference price derived from Malaysia Derivatives Exchange and Indonesia CPO Exchange. Based on the calculation, CPO reference price would be US$ 774,93/MT.

“CPO reference price escalates and more than the threshold which is US$ 680/MT. That is why according to the regulation of minister of finance (RMF), the government decided CPO OF would be US$ 18/MT and CPO levy would be US$ 75/MT for the next two weeks in January 2023,” General Director of Foreign Trade Ministry of Trade, Budi Santoso said, as in the official statement to InfoSAWIT, Tuesday (16/1/2024).

Based on RMF Number 39/PMK/0.10/2022 junto (jo.) Number 71 / 2023, CPO OF on 16—31 January 2024 is written on Colom number three, Attachment letter C, which is US$ 18/MT. according to RMF Number 103/PMK.05/2022 jo. Number 154/PMK.05/2022, CPO levy on 16-31 January 2024 is written on Colom number 3 Attachment letter C which is US$ 75/MT.

It means, CPO OF and levy in total would be US$ 93/MT or increase from on 1—15 January 2024

Budi Santoso also mentioned, CPO reference price happened for some factors, such as, the increasing crude oil price in the world, increasing vegetable oil prices (soyoil) because of the concern about decreasing production from Brazil and dry season. “And the worry of close palm oil supplies from Malaysia, the decreasing Malaysia ringgit towards US dollar,” Budi said. (T2)