PALMOILMAGAZINE, JAKARTA – On Friday, October 13th, in Jakarta, the Minister of Trade, Zulkifli Hasan, inaugurated the physical trade market for Crude Palm Oil (CPO) at the Indonesian CPO Exchange. This initiative represents a significant milestone in the Ministry of Trade’s efforts, in collaboration with the Commodity Futures Trading Supervisory Agency, to advance the CPO trading sector.
Additionally, the Indonesian CPO Exchange is tasked with the responsibility of promoting the establishment of a CPO reference price.
The launching was attended by related ministries/institutions, such as, The Secretariat, Coordinator Ministry in Economy, Ministry of Agriculture, Ministry of Finance, associations in palm oil, Palm Oil Plantation Fund Management Agency (PFMA), and academy. Minister Hasan; General Secretary, Suhanto; Head of Commodity Futures Trading Supervisory Agency, Didid Noordiatmoko; General Inspector ,Frida Adiati; General Director of Commerce and Consumer Protection, Moga Simatupang; Head of Trade Policy Agency, Kasan; Expert Staff in Management and Governance, Veri Anggrijono; Special Staff in International Trade Agreement, Bara Hasibuan; and officials in echelon II in Commodity Futures Trading Supervisory Agency.
“The launching of Indonesian CPO Exchange would be the breakthrough to improve CPO trade governance in exchange and to reinforce CPO trade performance as one mainstay commodity in Indonesia. Besides, it was the commitment of Ministry of Trade to encourage CPO price decision which is transparent, accountable, fair, and real time for big, medium companies, and smallholders,” he said, Hasan as in the official statement to Palmoilmagazine.com recently.
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Minister Zulkifli Hasan also told that Indonesia contributes more than 50 percent of CPO needs in the world but does not its own reference price. It is still decided from Rotterdam and Malaysia.
“Through CPO transaction in Indonesian CPO Exchange, it is hoped to get CPO price that would be the reference for traders in the future, Indonesia is the biggest CPO producer in the world but has not its own reference. We got many complaints from stakeholders by saying that it is not good to get reference price from other countries. This impacted to downstream sectors, such as, stakeholders would pay higher taxes. That is why the government facilitated to establish Indonesian CPO Exchange so that in the future it would be market influencer for the world,” he said.
He also mentioned, CPO is the strategic commodity in Indonesia. In 2022 CPO production in this country reached 46,73 million tons with the export reaching USD 29,62 billion. In May 2023, CPO production in Indonesia reached 20,86 million tons or higher 15,74 million tons to Malaysia.
Besides, CPO trade in the exchange would be the infrastructures for industries or mills to get commodity transaction in competitive price. “The launching is the commitment of Ministry of Trade to create CPO trade ecosystem,” Minister Zulkifli Hasan said. (T2)
