Indonesia Sets July CPO Reference Price at USD 1,000.90/MT, Down 2.78 Percent

RRI.CO.ID, Jakarta - The Indonesian Ministry of Trade has lowered the Reference Price (RP) for crude palm oil (CPO) for the July 2026 period in response to falling prices on the global market. The RP serves as the basis for setting the Export Duty (BK) and Export Levy (PE), which take effect this month.

The Ministry’s Director General of Foreign Trade, Tommy Andana, said the July 2026 CPO RP was set at USD 1,000.90 per metric ton (MT), down USD 28.61 per MT, or 2.78 percent, compared to June 2026.

The decline was driven by weakening global demand, particularly from India, and falling crude oil prices, which have put downward pressure on global vegetable oil prices.

“The CPO RP for July 2026 has decreased compared to the previous period. In accordance with regulations, the government has set the BK at USD 148 per MT and the PE at 12.5 percent of the RP, equivalent to USD 125.11 per MT,” Tommy said in a statement in Jakarta, as quoted on the ministry’s official website on Wednesday, July 1, 2026.

The RP was determined based on the average price for the period May 20–June 19, using data from the Malaysian CPO Exchange and the Indonesian CPO Exchange in accordance with Minister of Trade Regulation No. 35/2025, as the price difference among the three sources exceeded USD 40.

In addition to CPO, the government set the BK at USD 33 per metric ton for branded packaged refined, bleached, and deodorized (RBD) palm olein with a maximum net weight of 25 kilograms. The list of brands subject to this tariff is set out in the Minister of Trade Decree No. 1503/2026.

Meanwhile, the RP for cocoa beans in July 2026 was set at USD 3,969.56 per MT, up USD 137.39 or 3.59 percent from the previous month. This increase raised the Export Benchmark Price (HPE) for cocoa beans to USD 3,646 per MT, up USD 134 or 3.83 percent.

“The rise in RP and HPE for cocoa beans was driven by continued supply disruptions due to bad weather and declining production in major cocoa-producing countries in West Africa,” Tommy explained.

For forestry commodities, the HPE for leather products in July 2026 remained unchanged from the previous month, while the HPE for pine resin rose to USD 1,002 per MT, up USD 22 or 2.24 percent.

Several wood products also recorded increases, including veneer from natural forests and processed wood with a cross-sectional area of 1,000–4,000 mm² from species such as ebony, pine, gmelina, and sengon.

Conversely, declines were recorded in veneer from plantation forests, wooden sheets for packing boxes, wood chips or particles, and processed wood from meranti, mixed tropical hardwood, teak, and plantation species such as acacia, rubber, balsa, and eucalyptus.

The RP and HPE for CPO, cocoa beans, pine resin, wood products, and leather products are stipulated in the Minister of Trade Decree No. 1502/2026 on Export Benchmark Prices and Reference Prices for Agricultural and Forestry Products Subject to Export Duty and Public Service Agency Tariffs. ***