Palmoilmagazine.com, JAKARTA – In a public consultation about “The Plan to CPO Export Policy through Bursa Berjangka in Indonesia”, Monday, (5/6/2023) in the office of Ministry of Trade, Jakarta, many palm oil stakeholders and representatives of Indonesian Palm Oil Association (IPOA) attended.
Minister of Trade, Zulkifli Hasan said, his side always commits to escalate export performance of crude palm oil, encourage to establish CPO reference price transparently, accountably, and update both for big, medium companies, and also smallholders. This is from the initiation of CPO export policy by establishing ‘bursa berjangka’.
“CPO exports through ‘bursa berjangka’, as the target, would be launched in June 2023. It is hoped to establish CPO reference price. CPO export through ‘bursa berjangka’ would ease the stakeholders, escalate efficiency, transparency and eventually escalate the trade in Indonesia,” Minister Zulkifli said, as in the official statement to Palmoilmagazine.com, Monday (5/6/2023).
He also mentioned, exports are still surplus though they are not in big numbers because of the economy gets decreasing in the globe. That is why it needs innovation, such as, it needs to diverse trade from traditional markets to non-traditional ones, such as, Middle East, South Asia, and Africa. They are needed because there are many trade barriers in CPO exports such as, certification in Europe and America.
“Besides market diversion, it needs to reinforce export policy in Indonesia because CPO is one contributor of surplus trade in this country,” he said.
Minister Zulkifli continued, as the biggest CPO producer in the world, Indonesia should be better to establish its CPO reference price. But the facts show, Indonesia could not take roles to take parts in reference price that the markets in the globe acknowledge. It still refers to physical markets – Rotterdam and Malaysia Derivative Exchange to establish CPO price in the world.
“In association with the policy, it needs inputs so that CPO export through ‘bursa berjangka’ would not be a loss for CPO stakeholders. The available business does not change too much except obligating CPO export through ‘bursa berjangka’. The policy about domestic market obligation is still available which means every exporter is obliged to get export price in the first place. It is hoped the stakeholders would support CPO export regulation through ‘bursa berjangka’,” Minister Zulkifli said. (T2)