Jokowi Insinuated Indonesia Does Not Have A CPO Exchange, Trade Minister Zulhas Strives To Immediately Comply

JAKARTA - Minister of Trade (Mendag) Zulkifli Hasan said that he had been insinuated by President Joko Widodo (Jokowi) because Indonesia did not yet have a crude palm oil (CPO) exchange.

Furthermore, Zulhas also admitted that he would soon complete the formation of the CPO exchange so that Indonesia no longer needed to rely on Malaysia and the Netherlands.

"We benchmark the CPO Bursa in the Netherlands and Malaysia. The President has teased several times, we are the king of palm oil, how come the benchmark is the Netherlands and Malaysia, we don't have it. Hopefully we can also finish it," he said at the launch of the crypto asset exchange, at Four Seasons, Jakarta, Friday, July 28.

Meanwhile, Head of CoFTRA Didid Noordiatmoko said the palm oil exchange would soon be inaugurated. Currently, he continued, it is still in the harmonization stage at the Ministry of Law and Human Rights.

"Immediately. Again at the Ministry of Law and Human Rights," said Didid.

Even so, Didid could not confirm exactly when the palm oil exchange would be inaugurated. The reason is, the Regulation of the Minister of Trade or the Driver has not been completed.

"The driver hasn't come out yet," he said.

Previously, it was reported that the crude palm oil commodity exchange was 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.

Head of bappebti Didod Noordiatmoko said the commodity exchange aims to provide benefits for all parties, starting from farmers, traders, businessmen and tax revenues.

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

"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.