Government increases commodity base prices

The Jakarta Post, Jakarta

The government has increased the base export prices of crude palm oil (CPO), timber and coal following price increases on the international market.

""Trade Minister Mari Elka Pangestu decided March 29 to increase the base prices of CPO and its derivative products, coal, rattan, sand, wood products and leather,"" said director of forest and agricultural product exports at the Trade Ministry, Hartojo Agus Tjahjono, as reported Monday by Antara.

Following the minister's decision, the base export price for oil palm fruit and kernels has jumped from US$65 per metric ton last month to $85 per metric ton, CPO from $350 per metric ton to $362 per metric ton, crude olein and refined bleached deodorized palm oil (RBD PO) from $367 to $385 per metric ton, and refined bleached deodorized palm olein (RBD olein) from $377 to $395 per metric ton.

The base export price for all coal products has also increased from $28 to $34 per metric ton.

The new base export prices are valid from April 10 to May 9. Base prices are used as references in calculating export duties and are evaluated every month.

They are calculated based on average international prices and the average FOB prices at Indonesian ports in the previous month. The Finance Ministry October recently imposed a 5 percent export duty on coal exports to maintain domestic supplies.