After CPO Completes, CoFTRA Prepares Other Commodity Exchanges

Palm Oil Illustration (Photo: Doc. Antara)

JAKARTA - The Commodity Futures Trading Supervisory Agency (CoFTRA) of the Ministry of Trade (Kemendag) plans to create other commodity exchanges after crude palm oil (CPO). Other commodities such as rubber, coffee, cinnamon and cocoa.

"After the CPO, we will do it again, we have coffee, rubber, cassia vera ( sweet wood), it dominates the world. We have a lot of commodities, but we will do that slowly," said Head of CoFTRA Did Noordiatmoko quoting Antara, Saturday, April 1.

Didid said that Indonesia is a contributor to 80-100 percent of the needs of rubber commodities, coffee and cinnamon in the world. Therefore, it is hoped that Indonesia can have its own reference price.

CoFTRA is currently focusing on preparing a commodity exchange for crude palm oil. The success of crude palm oil is expected to be a reference for creating other commodity exchanges.

"Of course it doesn't have to be right now, hopefully we have a roadmap like CPO later, so we can make two simultaneously," said Didid.

The crude palm oil commodity exchange is expected to launch in June 2023. CoFTRA has prepared several options to make Indonesian crude palm oil commodity a reference price in the global market.

However, realizing a commodity market is not an easy thing. So far, Indonesia's CPO prices are still following Malaysia and do not yet have their own references.

According to Didid, the commodity exchange aims to provide benefits for all parties, starting from farmers, traders, businessmen and tax revenues.