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According to a decree issued by Indonesia's Trade Ministry and published on Tuesday, the reference price for crude palm oil (CPO) for October has been set at $963.61 per tonne, an increase of $8.90 from September's price of $954.71 per tonne, Reuters reported.
This rise in the base price means export levies on crude palm oil for October will remain unchanged from the previous month at $124 per tonne. In addition, Indonesia imposes a separate 10% export tax on crude palm oil as part of its strategy to regulate exports.
These measures are aimed at supporting the domestic market and stabilising palm oil prices, a key commodity for Indonesia as the world's largest producer. The price increase could have knock-on effects on global edible oil markets, given Indonesia's substantial share of supply.
Experts note that a higher reference price could encourage production, though its impact will depend on global demand and weather conditions in Indonesia's key growing regions. Further price adjustments are expected to be announced by the end of October.
Source: Reuters