Indonesia Raises Cocoa Bean Reference Price 36.66% for August 2026
Indonesia's Ministry of Trade has set the cocoa bean reference price for August 2026 at USD 5,424.96 per metric ton, up 36.66% from July, according to the official announcement released on July 31. The adjustment follows the surge in global cocoa prices driven by worsening supply expectations in West Africa. Export duty and export levy on cocoa beans are set at 7.5% each under the new reference price. For buyers of Indonesian-origin cocoa ingredients, the move raises the raw material cost floor for the world's largest Asian processing origin.
What the Ministry of Trade set
The Export Reference Price (HPE) for cocoa beans applies throughout August 2026 and serves as the tax base for Indonesian cocoa bean exports. Key figures from the announcement:
•Reference price: USD 5,424.96 per metric ton, up 36.66% month on month, implying a July level near USD 3,970.
•Export duty and levy: 7.5% each, calculated on the reference price.
•Scope: raw cocoa beans. Processed products such as cocoa powder, cocoa butter, and cocoa liquor are not subject to the bean export duty, a structure Indonesia has used since 2010 to keep grinding capacity at home.
The ministry attributed the increase to global supply disruption caused by severe weather and El Niño conditions in West Africa. In the same monthly decision, the reference price for crude palm oil fell 0.44% to USD 996.52 per ton, which shows the cocoa move came from cocoa-specific supply news rather than a broad commodity revaluation.
Why the price jumped
The reference price tracks international benchmarks, and those benchmarks moved hard in July. New York cocoa futures gained 27.5% during July, then added more than 10% in the first days of August after Ghana's regulator COCOBOD warned that 2026/27 production could fall at least 16%. Market forecasts for Ivory Coast point to a decline of about 11%. Brokers have cut global surplus estimates for 2026/27 from over 400,000 tonnes to near balance, with StoneX at 25,000 tonnes.
Indonesia is the third-largest cocoa grinding country and the biggest processing hub in Asia, so its official bean price reacts quickly when the global balance tightens. Domestic bean prices follow the export parity level, which means Indonesian grinders now pay more for raw material even though the duty itself applies only to bean exports.
What this means for cocoa powder buyers
Three practical consequences follow for buyers sourcing from Indonesia:
•Offers will firm up. The reference price sets the floor under Indonesian bean costs, so cocoa powder and cocoa butter offers from Indonesian origin are likely to rise through August and September, regardless of what futures do day to day.
•The duty structure favors processed goods. Because the 7.5% duty and levy hit raw beans only, Indonesian-processed powder and butter keep their structural cost advantage over bean-plus-grind supply chains.
•Watch the September revision. The HPE is reset monthly. A further increase in September would confirm that West African supply fears are still being priced in; a rollback would signal relief.
Huanda Cocoa operates grinding production in Indonesia, China, and Cambodia, so origin diversification is built into our supply. Buyers reviewing Indonesian-origin exposure for Q4 2026 contracts can reach our team through the contact page.
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