PALMOILMAGAZINE, JAKARTA – The Indonesian Crude Palm Oil (CPO) Exchange witnessed its inaugural trade on Friday, October 20, 2023. Regrettably, the trade did not attract a large crowd.
The Head of the Commodity Futures Trading Supervisory Agency, Didid Noordiatmoko, expressed the view that the absence of a substantial crowd during the first trade was a typical occurrence for an initial phase.
“For us, the point is about to confirm that first contract transaction got 4 lots. It is live. 4 lots mean 100 tons. It is okay though the numbers are not many for the first day, and first session,” he said at the Commodity Future, Jakarta, as Palmoilmagazine.com quoted from Tirto.id.
CPO exchange regulates three session – transaction which is, in the morning, midday, and evening. Though the first target was on 23 October 2023 and should fully run, Didid announced that the trade started on 20 October. “We started the first trade (before the schedule)” he said.
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The agency also optimist that in the first quarter of 2024, Indonesia would have credible CPO reference price which means, it is credible that covers, enough volume and price would not be drastically getting cheaper. “So, the buyers and sellers would be more. There would be many bids and asks which means, it is unknown who gets bid and deal,” he said.
He also emphasized that it is important to get fair in the process. When ‘many to many’ is realized, the price would be fair. It is not about to get increasing price, but the high price should be fair,” Didid said.
He also hoped that Indonesian CPO Exchange would be various, cover many regions. “This is only the first day, first session, first contract. Do not ask to run fast. I hope this would be running better and better, would have kinds of contract, and be variety. This covered Dumai and Belawan still,” he said.
He also proposed to management of Indonesian CPO Exchange, which is, Indonesia Commodity & Derivatives Exchange (ICDX) to expand regions on their products. “I proposed to ICDX to improve and should get more. It would not be only Dumai and Belawan but many more to go,” he said. (T2)
