InfoSAWIT, JAKARTA – Indonesia is a crude palm oil (CPO) leader in the globe which also becomes the backbone of economy in palm oil industries. Though its contribution reached more than 50% of the world needs, Indonesia could not decide its own CPO price. More than that, CPO price always refers to Forward Rotterdam and Malaysia Derivatives Exchange.
These challenges forced the government to get firm action. through Laws Number 32 / 1997 about commodity exchange trade was revised to be Laws Number 10 / 2011, the government obliged to get commodity reference price through commodity futures. In this case, the Government of Indonesia should respond by publishing the Regulation of Commodity Futures Trading Supervisory Agency Number 7 / 2023 about CPO procedures for physical trade implementation in the commodity futures.
The historical decision was implemented on 9 October. It was the way to get Indonesian Derivatives and Commodity Exchange. The main goal of CPO futures is about to realize the dream of Indonesia to get its own CPO price which is fair, transparent, and real time.
“The making of CPO exchange is about to realize our dream, Indonesia, to get its own CPO reference price which is fair, transparent, and real time. Commodity exchange in Indonesia would be a voluntary which means, there is no force for every stakeholder to participate in realizing CPO dignity in this country,” Head of Commodity Futures Trading Supervisory Agency, Didid Noordiatmoko said when delivering his speech in Indonesian Derivative and Commodity launching that InfoSAWIT saw, Friday (13/10/2023).
It was not easy to realize the goal. To get CPO dignity in Indonesia, the government and many parties should cooperate. That is why Didid continued, one significant thing is about to involve micro, small, and medium businesses (MSMB), stakeholders into Indonesian CPO exchange.
“Education and training about trade mechanism would be for the (big) stakeholders but also for small and medium scale mills,” he said.
By having the right understanding and trade mechanism in the exchange, MSMB and small and medium scale – mills would optimize their potential and compete fairly. The socialization is about to teach how to trade and deliver their rights and obligation, confirm that every planter gets their big advantages from their participation.
“On 16 October 2023, Monday, we would deliver socialization and training for new candidates of Indonesian exchange. There would be trade expo to escalate trade,” Didid said. (T2)