PALMOILMAGAZINE, JAKARTA – Indonesia, as the leading global producer of crude palm oil (CPO), boasts an impressive production of 47 million tons of CPO and an export value of approximately US$ 30 billion. However, this remarkable success cannot conceal the undeniable reality that the global CPO price continues to be determined by Malaysia and Rotterdam, leaving Indonesia without a voice.
Minister of Trade for the Republic of Indonesia, Zulkifli Hasan (Zulhas), addressed this issue during the launch of the Indonesian CPO Exchange in Jakarta, as reported by Palmoilmagazine.com on Friday, October 13, 2023.
“For many years, CPO reference prices have been dictated by Malaysia and Rotterdam. We cannot afford to remain passive. That’s why we need to make improvements,” Zulhas said.
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That is why to reinforce CPO trade, he took significant initiatives to design the substitution in CPO trade. The goal is very clear which is to get transparent, fair, accountable, and real time CPO price. It should involve many traders, starting from the sellers and also buyers.
“The Regulation of Commodity Futures Trading Supervisory Agency Number 7 / 2023 about CPO trade procedures in exchange would be voluntary. We have to be used to that the government regulates only. We should not oblige (every party) but we hope the cooperation and collaboration to deliver interests for our other friends and for our same interests,” Zulhas, said.
Zulhas continued, it is significant for every party to understand that regulating some trade is not about to deliver burden for stakeholders but in the contrary, it is the government’s effort to confirm that CPO trade would be fair, transparent, efficient, involves every party with the same interest.
But some stakeholders thought that the government’s involvement in publishing trade regulation would raise issues and bureaucracy. They thought, the close regulation would be difficult in trade process and make them stuck in complicated legal issues. They also thought, palm cooking oil trade should be determined by the markets. The government should not over act.
In the same time, the stakeholders also realize that it is important to have fair, stable, transparent trade ecosystem. They admitted that the collaboration with the government is the key to realize the goal.
Back to Zulhas, he said that it is significant for the government to sit down and discuss with stakeholders. “What they faced, delivered input and should get the same solution to deliver profits for every party,” he said. (T2)