InfoSAWIT, JAKARTA – The Reference Price (HR) for crude palm oil (CPO) for the period of February 2025 has been set at $955.44 per metric ton (MT). This value represents a decrease of $104.10 or 9.82% compared to the January 2025 CPO HR, which was recorded at $1,059.54 per MT.
This determination is outlined in the Minister of Trade's Decree (Kepmendag) Number 123 of 2025 regarding the CPO HR subject to Export Duties (BK) and the Public Service Agency's levy on the Palm Oil Plantation Fund Management Agency (BLU BPDP-KS), commonly referred to as Export Levies (PE).
The Acting Director General of Foreign Trade at the Ministry of Trade, Isy Karim, explained that the CPO BK for February 2025 refers to Column 7 of Appendix C of the Minister of Finance Regulation (PMK) Number 38 of 2024, which is set at $124 per MT. Meanwhile, the CPO PE is set at 7.5% of the CPO HR, amounting to $71.66 per MT, based on Appendix I of PMK Number 62 of 2024. Thus, the total imposition of BK and PE for CPO reaches $195.66 per ton.
"Currently, the CPO HR is approaching the threshold of $680 per MT. Therefore, referring to the applicable PMK, the government imposes a BK of $124 per MT and a PE of 7.5% of the CPO HR for February 2025," Isy Karim stated in an official statement received by InfoSAWIT on Saturday (February 1, 2025).
The price source for determining the CPO HR is obtained from the average price during the period from December 25, 2024, to January 24, 2025, at several major exchanges, namely the Indonesian CPO exchange at $867.83 per MT, the Malaysian CPO exchange at $1,043.05 per MT, and the Rotterdam CPO auction market at $1,253.90 per MT. According to the Minister of Trade Regulation (Permendag) Number 46 of 2022, if there is a price difference of more than $40 between sources, the CPO HR is determined based on the median of the two closest price sources, namely the Indonesian and Malaysian CPO exchanges.
Additionally, for branded cooking oil (Refined, Bleached, and Deodorized/RBD palm olein) in packages weighing ≤ 25 kg, the BK is set at $31 per MT. The determination of the brands subject to BK refers to Kepmendag Number 124 of 2025.
The decline in the CPO HR this time is attributed to several key factors, including weakened demand from India and falling prices of other vegetable oils such as soybean and rapeseed oil. This situation has the potential to affect the dynamics of CPO trade in the coming months. (T2)