CoFTRA Will Spread Incentives For Palm Oil Entrepreneurs Who Want To Enter The CPO Exchange

Oil palm illustration (Photo: Antara)

JAKARTA - The Supervisory Agency of the Commodity Futures Trading Supervisory Agency (CoFTRA) is formulating a number of attractive incentives for palm oil business players who want to enter the CPO Exchange to trade. The Ministry of Trade itself does not require producers to enter the stock exchange.

Head of CoFTRA Didid Noordiatmoko said that currently the plan to provide incentives for palm oil business actors is still being studied. Even so, Didid hopes to be formulated in the near future.

We studied the "Next step" to be given incentives. "What will come in later what are the incentives. We and ICDX are also in discussion," he said at the ICDX office, Jakarta, Friday, October 20.

Didid said, the incentives in question could also be in the form of fiscal and non-fiscal incentives. Even so, Didid has not been able to explain further because it is still under study, including coordinating with the Ministry of Finance.

"For example, this incentive is about taxes. Taxes are beyond our authority but we chatted with the Fiscal Policy Agency. If we go there (Ministry of Finance) we have to have a concept," said Didid.

With this voluntary CPO Exchange scheme, continued Didid, there must be factors that make producers want to enter.

"We are talking about fiscal how easy the procedure is. How is this being discussed. We hope that in the near future it can be announced. Our target in the first quarter of 2024 will be realized price reference," explained Didid.

Previously reported, the trade in the palm oil (CPO) exchange futures by the Indonesian Commodity and Derivative Exchange (ICDX) officially started today. In the first session of trading, it was recorded that the purchase transaction was around CPO 100 tons.

"Sesi satu kontrak petama, transaksinya hanya empat lot, kira-kira 100 ton. Okalah, kata kami masih ok itu," kata Didid dalam Live Transaksi Perdagangan CPO melalui Bursa Berjangka, di kantor ICDX, Jakarta, Jumat, 20 Oktober.

Didid said that when the initial trade opened the price of CPO at Rp12,485 per kilogram (kg). When the auction process in the stock exchange system takes place, the CPO price purchased by the buyer is Rp11,305 per kg.

That's a fair price. That's the first session, the first contract. Yes, that's just it, the name is new, don't ask to run first," he said.