Indonesian CPO Price is Targeted to be Established in Early 2024

Head of the Commodity Futures Trading Supervisory Agency (CoFTRA), Didodiatmoko (photo: Mery Handayani/VOI)

JAKARTA - The Ministry of Trade (Kemendag) through the Commodity Futures Trading Supervisory Agency (Bappebti) officially launched the CPO Exchange. It is targeted that the CPO reference price for export activities will be established in early 2024.

This was revealed by the Head of the Commodity Futures Trading Supervisory Agency (Bappebti), Didid Noordiatmoko at the inauguration of the CPO exchange, at the Mulia Hotel, Jakarta, Friday, October 13.

"Since October 23, we will start to form price discovery. "And with this hard effort to increase the stock exchange's credibility, we hope that in the first quarter of 2024 we will be able to realize the price reference," said Didid.

Furthermore, Didid explained that the government does not require all palm oil entrepreneurs to carry out transactions, especially exports through the CPO Exchange. However, he said, currently, there are 18 business actors registered on the CPO exchange.

"Currently, 18 CPO business actors have joined who are ready to trade via the ICDX exchange," said Didid.

Meanwhile, Minister of Trade Zulkifli Hasan said that currently the reference price for CPO has not yet been established on the stock exchange. However, the Ministry of Trade targets the CPO Exchange to be able to establish a fair, transparent, and real-time reference price.

"Not yet, it just came out today," he said.

Apart from that, Zulhas, Zulkifli's nickname, said that the formation of the CPO exchange was based on the condition of Indonesia being the largest CPO producer in the world, but the reference price still refers to other countries.

“We have long wanted to have a CPO exchange. We are the world champions in CPO production, that is the reference for world CPO prices. So if people ask about the CPO exchange price, it's us. Yes, so far it hasn't, it hasn't happened. "We even joined Rotterdam and Malaysia," he said.

According to Zulhas, this CPO exchange will benefit entrepreneurs. This is because the reference price for CPO issued by other countries, such as Rotterdam, is usually too high. So, entrepreneurs have to pay larger export duties and levies.

“Like Rotterdam it is sometimes higher. If the price is higher, paying taxes is expensive, export levies and export duties are more expensive. Because the reference is, Rotterdam doesn't have palm oil, but it is a price reference. "Of course it will be very detrimental to our fellow entrepreneurs," he said.