PALMOILMAGAZINE, JAKARTA PT Kharisma Pemasaran Bersama Nusantara (KPBN) has emerged as a key player in the crude palm oil (CPO) trade in Indonesia, particularly through its tender collaboration with PT Perkebunan Nusantara (PTPN).
While not encompassing the entirety of PTPN’s production, KPBN has affirmed its involvement in the tender process, while other transactions occur through direct selling.
Andrial Saputra, the Head of Exchange and Business Development at PT Kharisma Pemasaran Bersama (KPBN), highlighted that KPBN meets two essential criteria as an exchange.
Also Read: Vice Minister of Trade, Jerry: Strengthening CPO Trade for State Revenues
The pricing mechanisms, including price discovery and reference, are executed within KPBN. Price discovery is substantiated by regular tender processes at KPBN, ensuring daily transactions occur.
Price reference for CPO price in KPBN becomes the reference for the Ministry of Agriculture through the Regulation of Minister of Agriculture Number 1/2018 to decide fresh fruit bunch (FFB) price in each province by using the CPO average price in KPBN, and in the Ministry of Energy and Mineral Resources (EMR) through the Decision of Minister EMR that made the CPO average price in KPBN the basic basis for deciding biodiesel subsidy.
Also Read:
- Minister of Agriculture Amran Sulaiman Supports Palm Oil Development to Downstreaming
- Minister Amran Encourages Unity of Palm Associations at ASPEKPIR Inaugural Event
- IPOSC Advocates Increased Productivity for Smallholder Plantations
- Palm Oil Advocacy Efforts by Workers and Stakeholders in the European Union
KPBN was in coordination with the biggest data companies, Reuters and Bloomberg, to provide live CPO price data in KPBN on their own terminal platforms.
By having the collaboration, the CPO price in KPBN gets more famous for traders globally than the CPO price in Indonesia. While the third condition, which is hedging transactions, is not running well yet,. But this is not too difficult. It is just about to multiply forward transactions in KPBN tenders.
He said that KPBN could potentially be the exchange within the terms and conditions, which are administrative ones. It just needs to be modal and registered with the Commodity Future Trading Supervisory Agency to become exchanged. (T2)
