JAKARTA, PALMOILMAGAZINE – The Indonesian government has raised the Reference Price (HR) for crude palm oil (CPO) for the period September 1–30, 2025 to US$954.71 per metric ton (MT). This represents an increase of 4.81% or US$43.80 from the previous month’s reference price of US$910.91/MT.
The new reference price is stipulated under Minister of Trade Decree (Kepmendag) No. 1845 of 2025. Based on this adjustment, the Ministry of Trade set the CPO Export Levy (BK) at US$124/MT and the Export Duty (PE) at 10% of the reference price, equivalent to US$95.47/MT.
“The CPO reference price continues to move further above the US$680/MT threshold. In line with the current Ministry of Finance regulation, the government applies the corresponding levy and duty for September,” said Tommy Andana, Acting Director General of Foreign Trade at the Ministry of Trade, in an official statement received by beige-heron-208544.hostingersite.com on Monday (September 1, 2025).
Price Calculation Method
The CPO reference price is derived from the average market prices between July 25 and August 24, 2025 in three major markets:
- Indonesia: US$895.72/MT
- Malaysia: US$1,013.70/MT
- Rotterdam port: US$1,240.12/MT
Under Minister of Trade Regulation No. 46/2022, when the price gap among the three sources exceeds US$40, the reference is calculated from the two closest to the median. As a result, the September HR was based on prices from Indonesia and Malaysia, leading to the official figure of US$954.71/MT.
Other Export Tariffs
The government also set export tariffs for refined palm oil products. Branded packaged RBD palm olein (≤25 kg) is subject to an export levy of US$31/MT, as stipulated in Kepmendag No. 1846/2025, which lists eligible registered brands.
Market Drivers
According to the Ministry of Trade, the upward trend in CPO prices is driven by:
- Stronger demand from India, one of the world’s largest importers.
- Indonesia’s plan to roll out the B50 biodiesel mandate, boosting domestic CPO consumption.
- Rising prices of other vegetable oils, particularly soybean oil, due to:
- The U.S. biodiesel program increasing domestic soybean oil demand.
- China’s plan to impose antidumping duties on Canadian canola oil.
Outlook
The higher reference price signals positive momentum for Indonesia’s palm oil industry. However, it also means exporters must bear higher export levies and duties. On the global stage, analysts expect the strengthening trend to persist amid tight supplies of vegetable oils. (P2)
