PALMOILMAGAZINE, JAKARTA — The Indonesian government has officially set the Crude Palm Oil (CPO) Reference Price for August 2025 at US$910.91 per metric ton (MT). This marks an increase of US$33.02, or about 3.76%, compared to July’s reference price of US$877.89/MT.
The price adjustment is outlined in the Minister of Trade Decree No. 1694 of 2025, which serves as the basis for determining the Export Duty (BK) and Export Levy (PE) collected by the Palm Oil Plantation Fund Management Agency (BPDPKS). The policy is effective from August 1 to 31, 2025.
Because the Reference Price exceeds the US$680/MT threshold, the government has set the Export Duty (BK) at US$74/MT, following Column 6 of Appendix C in Finance Ministry Regulation (PMK) No. 38/2024. The Export Levy (PE) is set at 10% of the reference price, or US$91.09/MT, as stipulated in Appendix I of PMK No. 30/2025.
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“This month’s price increase is mainly due to higher global demand, particularly from India and China, which is not being matched by rising production,” said Tommy Andana, Acting Director General of Foreign Trade at the Ministry of Trade, in an official statement received by Palmoilmagazine.com on Thursday (July 31, 2025).
He further explained that the Reference Price is based on the average prices from three key markets between June 25 and July 24, 2025:
- Indonesia CPO Exchange: US$857.24/MT
- Malaysia CPO Exchange: US$964.59/MT
- Rotterdam Port Price: US$1,179.79/MT
In accordance with Trade Ministry Regulation No. 46/2022, if the price spread among these three markets exceeds US$40, the Reference Price is calculated using the two median values. In this case, prices from Indonesia and Malaysia were used, resulting in the final figure of US$910.91/MT.
Meanwhile, for branded packaged cooking oil (RBD palm olein) in containers of 25 kg or less, the Export Duty remains at US$0/MT. This is based on Minister of Trade Decree No. 1695 of 2025, which lists the eligible product brands.
Amid ongoing volatility in global markets, the government reaffirmed its commitment to maintaining a balance between export revenue generation and the sustainability of Indonesia’s palm oil industry. (P2)
