TEMPO.CO, Jakarta - The Trade Ministry has set the reference price for crude palm oil (CPO) at US$743.23 per metric ton to determine November's CPO export duty. The price declines by five percent or US$38.28 when compared that in October at US$781.49 per metric ton.
"Currently, the reference price for CPO has decreased to below US$750 per metric ton, so that the export duty for the November 2016 period is removed," Trade Ministry’s director of foreign trade Dody Edward said in Jakarta on Tuesday, November 1, 2016.
The price is set under Trade Minister Regulation No. 74/M-DAG/PER/10/2016 on the determination of the export benchmark price for agricultural and forestry products imposed with export duties.
This year, CPO exports have been imposed with export duties in May and October, as the prices were above the threshold of the imposition of export duties.
The Indonesian Palm Oil Producers Association (Gapki) expressed optimism that the CPO prices would rebound.
"Since August, the [CPO] prices has shown an increasing trend," Gapki executive director Fadhil Hasan said.
In the first week of August, 2016, the CPO price stood at US$700 per metric ton and increased to US$890 in early September. Fadhil explained that the increasing price was caused by declining CPO stocks in Indonesia and Malaysia to below 2 million tons.
PINGIT ARIA
