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Palm Oil OF and Levy in February 2024 Would be US$ 118 per Ton



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Palm Oil OF and Levy in February 2024 Would be US$ 118 per Ton

InfoSAWIT, JAKARTA — Reference price for crude palm oil (CPO) to decide out fee (OF) and tariff on Palm Oil Plantation Fund Management Agency (PFMA) or known as export levy on 1—29 February 2024 would be US$ 806,40/metric ton (MT). The numbers escalated US$ 31,48 or 4,06 percent from on 1 - 15 January 2024 that were US$ 774,93/MT.

The decision was written on the Decision of Minister of Trade Number 142 / 2024 about CPO Reference Price that is charged on Out Fee and Service Tariff on PFMA on 1—29 February 2024.

Since 1 February 2024 CPO reference price would be decided per month from the first date until the last date in each month. It is regulated by the Regulation of General Director of Foreign Trade Number 01/DAGLU/PER/01/2024 about Technical Instruction in Implementing Procedures for Determining Export Benchmark Price for Agricultural and Forestry Products Subjected to Export Duty. Reference Price on Agricultural and Forestry Products, Brand Lists of Refined, Bleached, and Deodorized Palm Oil which are Charged by Out Fee and Service Tariff on Palm Oil Plantation Fund Management Agency (PFMA)

The sources of price to decide CPO reference price would be from the average price on 25 December 2023 — 9 January 2024 at Indonesian CPO Exchange which was US$ 790,84/MT, Malaysia Derivative Exchange which was US$ 821,97/MT, and Rotterdam which was US$ 806,40/MT.

Referring to the Regulation of Minister of Trade Number 46 / 2022, if there are different average prices more than USD 40, the calculation is that CPO reference price uses the average price from two sources that become the median and from the closes the sources of price. It means, CPO reference price derived from Malaysia Derivatives Exchange and Indonesian CPO Exchange. From the calculation, CPO reference price would be US$ 806,40/MT.

Besides, palm cooking oil (refined, bleached, and deodorized/RBD palm olein) in branded packages and packaged within net less or equal to 25 kg would get charge OF 0/MT with the brand lists as regulated in the Decision of Minister of Trade Number 143 / 2024 about Brand Lists of Refined, Bleached, and Deodorized (RBD) Palm Olein in Branded Packages and Packaged within Net less or equal to 25 Kg.

“CPO reference price escalates and more than the threshold which is US$ 680/MT. Referring to the regulation of minister of finance (RMF) the government decided CPO OF would be USD 33/MT and CPO levy would be US$ 85/MT on 1—29 February 2024,” General Director of Foreign Trade Ministry of Trade, Budi Santoso said, as in the official statement to InfoSAWIT, Thursday (1/2/2024).

CPO OF on 1—29 February 2024 refers to Colom number 4, Attachment letter C, RMF Number 39/PMK/0.10/2022 juncto (jo) Number 71 / 2023 which is US$ 33/MT. while CPO levy on 1—15 January 2024 refers to Attachment letter C, RMF Number 103/PMK.05/2022 jo. 154/PMK.05/2022 which is US$ 85/MT. It means CPO OF and levy would be US$ 118/MT.

“The increasing CPO reference price happened for some factors, such as, the increasing palm oil demands without being supported by the increasing production namely from Indonesia, Malaysia, and the increasing crude oil price in the world,” Budi said. (T2)


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