InfoSAWIT, JAKARTA - The Reference Price (HR) for crude palm oil (CPO) for the purpose of determining the Export Tax (BK) and the Public Service Agency tariff of the Palm Oil Plantation Fund Management Agency (BLU BPDP-KS) for March 2025 is set at US$ 954.50/MT. This value represents a decrease of US$ 0.94 or 0.10 percent from the HR CPO for the period of February 1-28, 2025, which was recorded at US$ 955.44/MT.
This determination is stated in the Minister of Trade's Decree No. 220 of 2025 regarding the HR CPO subject to BK and BPDP-KS Public Service Tariff for March 2025.
Acting Director General of Foreign Trade at the Ministry of Trade, Isy Karim, stated that the CPO export tax for March 2025 refers to Column 7 of Appendix C of the Minister of Finance Regulation (PMK) No. 38 of 2024, amounting to US$ 124/MT. Meanwhile, the CPO levy for March 2025 refers to Appendix I of PMK No. 62 of 2024, which is 7.5 percent of the HR CPO for March 2025, amounting to US$ 71.5877/MT. Thus, the total BK and PE for CPO is set at US$ 195.58/ton.
"Currently, the HR CPO is approaching the threshold of US$ 680/MT. Therefore, based on the applicable PMK, the government imposes a CPO export tax of US$ 124/MT and a CPO levy of 7.5 percent of the HR CPO for March 2025, which is US$ 71.5877/MT," Isy stated in an official statement received by InfoSAWIT on Wednesday (March 5, 2025).
The price source for determining the HR CPO is obtained from the average price during the period of January 25 to February 24, 2025, at the CPO exchange in Indonesia, which was US$ 845.38/MT, the CPO exchange in Malaysia at US$ 1,063.62/MT, and the Rotterdam CPO auction market at US$ 1,418.68/MT.
According to the Minister of Trade Regulation (Permendag) No. 46 of 2022, if there is a price difference of more than US$ 40 among the three price sources, the HR CPO calculation will use the average of the two price sources that are median and the closest price source to the median. Therefore, the HR is sourced from the CPO exchange in Malaysia and the CPO exchange in Indonesia. Based on this calculation, the HR CPO is set to decrease to US$ 954.50/MT. The decline in HR CPO is attributed to several factors, including a decrease in demand, particularly from India, and a drop in prices of other vegetable oils.
Additionally, branded and packaged cooking oil (Refined, Bleached, and Deodorized/RBD palm olein) weighing ≤ 25 kg is subject to an export tax of US$ 31/MT, as stipulated in the Minister of Trade Decree No. 221 of 2025 regarding the List of Branded RBD Palm Olein Packaged and Weighing ≤ 25 Kg. (T2)
