PALMOILMAGAZINE, MAKASSAR – The Indonesian Palm Oil Farmers Association (Apkasindo) was informed of the delay in the establishment of a domestic crude palm oil (CPO) exchange by the Commodity Futures Trading Regulatory Authority (Bappebti). This unforeseen development has left some smallholders disappointed.
In an official statement provided to Palmoilmagazine.com, Bappebti explained that the postponement was necessary to ensure that the new regulations do not conflict with existing ones.
Didid Noordiatmoko, the Head of Bappebti, emphasized the importance of adopting a precautionary approach to maintain coherence between policies and regulations. He expressed the intention to ensure that any formulated policies and regulations are harmonious and do not contradict each other. The government has already developed three policy drafts and technical regulations related 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 Regulation of CPO Physical Trade.
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Meanwhile, Chairman of Apkasindo South Sulawesi Province, H. Badaruddin Puang Sabang proposed to Central Apkasindo to have peaceful demonstration if Bappebti may not be serious about CPO exchange (in Indonesian version).
“The smallholders are pressed and get much poorer because CPO tender at PT Kharisma Pemasaran Bersama Nusantara (KPBN) got no increasing price though CPO in Malaysia and Rotterdam got increasing. As the result, smallholders’ fresh fruit bunch (FFB) production gets cheaper in Indonesia if referring to CPO tender at KPBN,” he said, as in the official statement to Palmoilmagazine.com.
Badaruddin hoped, CPO exchange in Indonesian version should be immediately published so that Indonesia would have is own reference price and it is normal as the biggest CPO producer in the world
“CPO exchange is the other form of the independence of Indonesia from the mainstay commodity. The smallholders and workers might be 17 million in Indonesia and support Ministry of Trade to realize CPO price in Indonesia. We hope this could be the special present from Ministry of Trade to smallholders in the 78th Independence – day of Indonesia,” Badar said. (T2)
