InfoSAWIT, JAKARTA – To reinforce the position of strategic commodity in Indonesia, Head of Commodity Futures Trading Supervisory Agency, Ministry of Trade, Kasan Muhri said that the establishment of Indonesia Crude Palm Oil (CPO) Exchange on 13 October 2023, would be the strategic thing.
The initiative was planned for the local market and it is voluntary with the main goal, to establish CPO reference price which is transparent, credible and real time. This is also about to deliver big control for Indonesia on CPO reference price without depending on Malaysia Derivatives Exchange and Rotterdam.
CPO reference price is important not only in economic aspect but also it would have something to do with export reference price and would escalate the revenue from taxes. It would be delivering the positive for fresh fruit bunch (FFB) that Ministry of Agriculture regulates and biodiesel reference price that Ministry of Energy and Mineral Resource regulates. It would be more accurate.
Since Indonesia CPO Exchange was established, many have been done to support it. Commodity Futures Trading Supervisory Agency, Indonesian Chambers and related association did socialization, approach to every stakeholder, and delivered technical training. In 2023, 34 CPO companies registered as the members of the agency and the transaction reached 1.822 lots (equal to 9.110 metric tons).
Not only that Commodity Futures Trading Supervisory Agency did strategic things by expanding ports to handover physical CPO to be 19 ports by publishing peraturan tata tertib (PTT) about the exchange. The ports are in strategic regions, such as Meulaboh, Teluk Bayur, Pulau Bali, Jayapura and Merauke. The port expansion would be about to escalate flexibility and fastness in physical CPO transaction.
“As the concrete thing in 2024, Commodity Futures Trading Supervisory Agency encouraged to escalate CPO transaction liquidity in the exchange. I also ask for the CPO ecosystem to implement physical exchange and future better by delivering more optimal services,” Kasan said, as in the official statement to InfoSAWIT, Saturday (13/1/2024).
The other strategic things are about to escalate trainings and socialization for stakeholders, encourage CPO transaction in export orientation, reinforce collaboration among the exchange, unit, related ministries, and association, and encourage to deliver incentive for local CPO stakeholders. (T2)