Legal Review of CPO Exchange Regulation Underway at Ministry of Law and Human Rights

Palm Oil Magazine
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PALMOILMAGAZINE, JAKARTA Olvy Andrianita, the Secretary of Badan Pengawas Perdagangan Berjangka Komoditi (Bappepti) or the Commodity Futures Trading Regulatory Agency, mentioned that the draft policy from the Minister of Trade concerning the export of Crude Palm Oil (CPO) through the Indonesian exchange has undergone legal review within the Legal Bureau of the Ministry of Trade. It will subsequently undergo harmonization by the Ministry of Law and Human Rights.

“It is hoped through this meeting that there would be inputs from many stakeholders before the draft is harmonized by Ministry Law and Human Rights,” Olvy said, as in the official statement to Palmoilmagazine.com, Thursday (24/8/2023).

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Olvy told, the substances regulated in the draft would be about general regulation, organization, procedures or trade, monitoring mechanism, dispute solution mechanism, and sanction.

Also Read : Proposed Postponement of Indonesian CPO Exchange: Three Prepared Regulations

In the meeting, some stakeholders proposed inputs, such as, CPO reference price determination, ports to deliver (CPO), and CPO quality classification. The active communication among Ministry of Trade and stakeholders in palm oil sectors is needed to perfect the draft of policy.

Olvy emphasized that the draft is still being formulated in Bappebti and could be substituted with any development. That is why it needs inputs and questions from the stakeholders particularly that relate to technical issues to accommodate the draft.

“There would be transition for 60 days after the Regulation of Minister of Trade has been inaugurated. We would do our best to socialize and train the stakeholders so that the implementation would run well and the idea to get CPO reference price in Indonesia would be realized,” Olvy said

Also Read : Minister of Trade, Zulkifli Hasan: Public Consultation to CPO Exchange in Indonesia Version

Director of Agriculture and Forestry Product Export, Farid Amir also said the big line of the draft and CPO export process through (Indonesian) exchange.

“There would be some changes in CPO export regulation, such as, every exporter is obliged to join exchange by registering theirs (institution) in the first place only. The ‘Registered Exporter’ would be available as long as they are still active exporting. CPO exchange would publish CPO purchase evidence on CPO transaction by the stakeholders (exporters). CPO purchase evidence would be one condition to publish export approval besides the ownership of export rights published by General Directorate of Foreign Trade,” Farid said.

Meanwhile Head of Commodity Futures Development Bureau, Tirta Karma Senjaya explained that the draft is in public consultation still. It would be guidelines to regulate technical issue about CPO export policy through (Indonesian) exchange.

“CPO exchange is arranging the draft and should get approval from Bappebti. But Bappebti has also formulated major points that should be regulated in the draft based on the tin transaction experiences in features commodity, such as, mechanism of exchange membership registration, kinds and qualify of commodity, mechanism and system of trade, and force majeure condition,” Tirta said. (T2)

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