Jakarta – The trade ministry announced that the reference price of crude palm oil (CPO) for the period of 16 to 31 July 2023 was set at US$791.02 per metric ton. The reference price is aimed for determining the palm oil export duty (BK) and export levy (PE) for the public services by the oil palm plantation fund management board (BPDPKS).

“Based on the finance minister  regulation, the government has set the CPO export duty at US$33 per metric ton,” the trade ministry’s Foreign Trade Director General Budi Santoso said in a press release on Saturday, 15 July 2023.

Meanwhile, the CPO export levy is set at US$85 per metric ton. Both the export duty and export levy are higher if compared to those during the period of 1–15 July 2023.

The new increase of BK and PE of CPO is contained in the trade minister’s decree no.1157/2023 on the reference price of CPO liable for BK and PE for the period of 16 – 31 July 2023.

The CPO reference price increased by US$43.79 or 5.86% from that of the period of 01 – 15 July 2023, which was set at US$747.23 per metric ton. Budi said that currently the CPO reference price saw an increase far higher than the threshold of US$680 per metric ton.

The CPO export duty (BK) during this period refers to the column 4 of C attachment of the finance minister regulation no. 39/PMK/0.10/2022 jo no. 123/PMK.010/2022.  The CPO export levy (PE) during the same period refers to C attachment of the finance minister regulation no.103/PMK.05/2022 jo no. 154/PMK.05/2022.

According to Budi, the increase of  CPO reference price is influenced by a number of factors. First, the indication of rising export compared to that of the period of May 2023. The rising export trend was mainly seen from Malaysia, which was not accompanied by the rise of production in the country. Second, the increase of soybean price. (*)

Source: TEMPO.CO