PALMOILMAGAZINE, JAKARTA – Didid Noordiatmoko, the Chief of the Commodity Futures Trading Regulatory Agency (Bappebti), has stated that the policy draft concerning the trading of crude palm oil (CPO) via the Indonesian exchange is currently underway, with a focus on prioritizing precautionary principles. He believes that these principles will ensure harmonious alignment between policies and regulations, preventing any potential conflicts.
Concurrently, the government has developed three policy drafts and accompanying technical regulations pertaining to the Indonesian CPO exchange.
The first, Draft of Substitution of Regulation of Minister of Trade Number 50 / 2022. The second, Draft of Regulation of Bappebti about Technical Regulation to Implement Physical Trade of CPO; and the third, Draft of Ordinance REglation of CPO Physical Trade.
He also said, there would be some advantages to get CPO exchange in Indonesian version, the first, there would be CPO reference price which is transparent, accountable, and real time. Nowadays CPO trade in Indonesia still refers to foreign reference price, is not transparent and not real time. It raised underpricing.
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“CPO trade in Indonesia still refers to Malaysian Exchange and Rotterdam. In fact Indonesia is the biggest CPO exporter and producer in the world within the volume reaching 3,462 million tons in 2022. Though the exports surplus, the revenue was not maximal yet for the people of Indonesia,” Didid said, as in the official statement to Palmoilmagazine.com.
The second advantage is the export reference price would clearly be decided and the revenue would be increasing. The third advantage is that it could improve fresh fruit bunch (FFB) price by Ministry of Agriculture and make biodiesel reference price by Ministry of Energy and Mineral Resource more accurate.
“In the future, CPO exchange in Indonesian version could facilitate CPO trade locally and the exchange transaction would be more liquid,” he said.
The progress of CPO export policy draft through exchange through the Regulation of Minister of Trade was legally studied. “Draft of Minister of Trade has been formulated about regulatory impact assessment and has been studied by Legal Bureau in Ministry of Trade. After that, it would be harmonized by Ministry of Law and Human Rights. Ministry of Trade would meet again to discuss the drafts with other related instances on 4 August 2023,” Didid said. (T2)
