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Indonesia's Ministry of Trade has officially reduced the reference price and export duty for crude palm oil shipments in November, effectively lowering the total financial burden on exporters by approximately 20 percent. This adjustment coincides with Jakarta's broader initiative to overhaul the governance of strategic natural resource exports, including palm oil and coal.
Under the newly released November schedule, the reference export price used to determine duties has been set at 978.90 US dollars per metric ton, marking a 6.1 percent decrease from the October price of 1,042.15 US dollars. Consequently, the specific export duty for crude palm oil was lowered to 124 US dollars per ton from the previous 178 US dollars. Additionally, the export levy—calculated as 12.5 percent of the reference price—dropped to 122.36 US dollars per ton. In aggregate, exporters will face a combined cost of 246.36 US dollars per ton for November shipments, down significantly from 308.27 US dollars in October.
The price revision comes as the Indonesian government begins enforcing Government Regulation No. 24 of 2026. This regulation introduces a revised export governance framework for commodities designated as strategic natural resources, specifically crude palm oil, coal, and ferroalloys. According to Indonesia's customs authority, the new rules mandate expanded reporting requirements for exporters, including more rigorous declarations concerning the repatriation of export proceeds. A transition period is currently in effect through late December, with the full implementation of these reporting protocols slated for January 1, 2027.
This regulatory evolution follows a policy announcement made by President Prabowo Subianto in May, during which he proposed that all sales of strategic natural resources should eventually be managed through state-owned enterprises acting as single exporters. President Prabowo framed this strategy as a necessary measure to combat illegal trade practices that result in significant annual economic losses, pointing to similar models utilized by nations such as Saudi Arabia, Russia, and Malaysia. While the vision for state-managed exports remains a long-term goal, the immediate focus remains on the customs and reporting changes currently being rolled out.
As the world's leading producer of palm oil, Indonesia's export cost structures and regulatory environment are critical factors for global edible oil and biofuel markets. Monthly adjustments to reference prices typically mirror international market trends rather than shifts in domestic production capacity. For industry stakeholders, including processors and smallholder farmers, the reduction in combined duties and levies is significant as it directly influences the margins that can be passed down the supply chain, particularly during periods of softer global commodity prices.
Source: Global Agriculture