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To Become CPO Price Barometer in the World

Doc. InfoSAWIT
To Become CPO Price Barometer in the World

InfoSAWIT, JAKARTA - Palm oil plantations that develop in many regions in Indonesia, become the environmental industries. The plantations started in Sumatera Island and now also develop in Papua Island. They become one economic sector that encourages the people’s welfare.

The presence of palm oil plantation has become the power of economy in one region. It has been the source of economic progress locally. Having economic rotation in the plantations, the economy spreads to around palm oil plantations.

To encourage the people’s economic development, palm oil economy has become the power for many populations. The people who work at the plantations or as smallholders keep developing together with those in other regions. The presence of markets, services, and business delivered colorful progress in the society around the plantations.

In some palm oil plantation centers, the villagers’ economic development also encouraged the progress there. It is normal if one village turns to be new sub district or even regency or city and even became a new province in Indonesia.

The strong economic progress from palm oil plantations in one region is a notice for the central government. From the plantations, the villagers get more population and get the same progress. The villagers also reinforce the plantations in one region.

Encourage Indonesia CPO Exchange

The people’s economy that got better in palm oil centers also encouraged the government to launch Indonesia Crude Palm Oil (CPO) Exchange. As the regulator, the government should encourage CPO trade in national level to be the barometer for CPO trade abroad.

The presence of Indonesia CPO Exchange, as it is hoped, would be the markets for CPO traders or stakeholders in this country. Actually, it represents ICDX (Bursa Komoditi Derivatif Indonesia/BKDI) to be the part of CPO trade in Indonesia. On the other hand, CPO exchange that belongs to the government’s company or Kantor Pemasaran Bersama Negara (KPBN) has its own markets that keep developing.

KPBN now becomes one business unit that is managed by Inacom. The latest information mentioned that Inacom got regulatory permit to multiply its membership from the private companies. The openness would fairly operate CPO and its derivative trade

The open factors in CPO and its derivative trade would become its own encouragement to realize fairness for every stakeholder. For information the stakeholders significantly got increased in Indonesia.

CPO production from Indonesia supplied the market needs in the world that reached up to more than 55 percent. It means CPO supplies in the world depend on Indonesia. Indonesia CPO Exchange, just like many hoped for, would facilitate CPO supplies to be more open and fairer for many parties, including the smallholders.

To realize it, it needs independent institution and would be the place for many parties to join in, trade their products together. The government’s roles are needed here to encourage fairness for the people of Indonesia.

Indonesia, go forward; Indonesia, have sovereignty, be fair, and be prosperous. Freedom! (*)

By: Ignatius Ery Kurniawan

Editorial Majalah InfoSAWIT, January 2024