The Indonesian Crude Palm Oil (CPO) Exchange has been formally launched by the government via the Ministry of Trade (Kemendag). The Indonesia Commodity & Derivatives Exchange (ICDX) Group has been formally designated by the Commodity Futures Trading Regulatory Agency (Bappebti) as the exchange’s organizer for crude palm oil (CPO).
The man who goes by Zulhas stated that they wish to enhance CPO trading governance. He clarified that with a production volume of almost 47 million tons and an export value of nearly US$30 billion, Indonesia is the leading producer of this commodity. CPO prices, however, have been determined by the CPO exchanges in Rotterdam and Malaysia for a considerable amount of time.
Many have expressed dissatisfaction over the fact that we occasionally use inaccurate prices when referencing Rotterdam and Malaysian prices. Taxes paid by purchasers may increase as a result. At the CPO Exchange’s opening on Friday, October 13, 2023, at the Hotel Mulia in South Jakarta, Minister of Trade (Mendag) Zulkifli Hasan stated, “We hope that with this CPO Exchange, the government will facilitate collaboration here so that the CPO exchange can become a global reference.”
It is entirely optional to take part in this CPO exchange. Participants in the palm oil industry are not obligated to attend. However, Zulhas pointed out that since it would be more effective in terms of reference prices, having CPO entrepreneurs involved would be advantageous for them.
The head of Bappebti, Didid Noordiatmoko, who was also present, said that the goal is to have the Indonesian CPO Exchange up and running by October 23, 2023. They anticipate forming the price discovery process by that date. He intends to accomplish price references by the first quarter of 2023.
References :
Aprilia, Z. (2023, October 13). Bursa CPO RI Resmi Diluncurkan, Ini Teknis Pelaksanaannya. CNBC Indonesia. https://www.cnbcindonesia.com/market/20231013112637-17-480290/bursa-cpo-ri-resmi-diluncurkan-ini-teknis-pelaksanaannya