InfoSAWIT, JAKARTA – On Friday, 13 November 2023 is the history to improve palm oil plantation (industrial) governance in Indonesia by the launching of Indonesian Crude Palm Oil  (CPO) Exchange. We hoped it would not be a ceremony only but also should be supervised and the implementation would be perfected if there are issues to go.

Chairman of Persatuan Organisasi Petani Sawit Indonesia (POPSI), Pahala Sibuea said that at least, there would be three main advantages from Indonesian CPO Exchnage. The first, the government as the regulation showed its dignity though it is unfortunate, it is still mandatory for stakeholders.

The second, it is the good progress and opportunity for stakeholders in small and medium scale, and even micro, small, and medium businesses to get parts in Indonesian CPO Exchange. It could minimize CPO trade monopoly.

The third, it would have transparent, accountable and fair price. This would deliver impacts for smallholders’ fresh fruit bunch (FFB). “CPO price would be the reference to determine smallholders’ FFB price,” he said, as in the official statement to InfoSAWIT, Friday (13/10/2023) in Jakarta.

He also said that it needs to notice mini mills with nowadays technology. Mini mills that operate now would deliver impacts for big scale - CPO mills. It needs to improve palm oil governance from the upstream particularly in having fair partnership.

“We know that the establishment of Indonesian CPO Exchange is not easy particularly it is not liquid and there would be minimum transaction in the exchange. The key in the exchange to be developing is the volume and actors should be more and would deliver profits for many parties. That is why every party should cooperate and support,” he said. (T2)