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Smallholders: Indonesia CPO Exchange Does not Deliver Advantages yet

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Smallholders: Indonesia CPO Exchange Does not Deliver Advantages yet

InfoSAWIT, JAKARTA – Chairman of Serikat Petani Kelapa Sawit (SPKS), Sabarudin said Indonesian Crude Palm Oil (CPO) Exchange is significant to decide fresh fruit bunch (FFB) produced by smallholders in Indonesia. Though Indonesia CPO Exchange now operates, smallholders did not significantly get more expensive FFB namely produced by independent smallholders.

He told that one factor happening is that the lack of policy to harmonize smallholders’ FFB price in CPO trade in the exchange. As in his official statement to InfoSAWIT, Wednesday (21/2/2024), he hoped Indonesian CPO Exchange managed by Bursa Komoditi Derivatif Indonesia (ICDX) should cooperate with PT Kharisma Pemasaran Bersama Nusantara (KPBN) to escalate liquidity and market competition.

He thought Indonesian CPO Exchange has the potential to respond the change in FFB supplies faster than it in other foreign stocks. He also told when FFB supply is difficult to get, as the response, CPO gets more expensive. While the harvests get abundant, FFB price would be adjustable.

To be effective, it needs more straight policy to regulate daily selling and supply so that CPO selling price would be positively delivering welfare for the smallholders.

He continued, Indonesia CPO Exchange should be more proactive to manage daily supply and demand so that CPO selling price would encourage smallholders to be better and become the main pillar for palm oil industries in Indonesia.

Though there are challenges to be solved, such as, coordination among related instances, effective policy implementation, Sabarudin remained optimist that Indonesian CPO Exchange would have the big potential to escalate the smallholders’ welfare in Indonesia if it is well managed and having synergy with related stakeholders. (T2)