PALMOILMAGAZINE, JAKARTA – Several smallholders’ associations, including the Perkumpulan Organisasi Petani Kelapa Sawit Indonesia Jaya (POPSI), Asosiasi Petani Kelapa Sawit Indonesia (Apkasindo) Perjuangan, and Serikat Petani Kelapa Sawit (SPKS), met with PT Kharisma Pemasaran Bersama Nusantara (PT KPBN) to discuss the transparency of crude palm oil (CPO) physical trade conducted by PT KPBN (Inacom).
For years, PT KPBN has conducted daily CPO tenders, handling volumes of 80 to 100 thousand tons per month, primarily purchased by large national palm oil companies.
Andrial Saputra, Head of Exchange and Business Development at PT KPBN, explained that CPO trade operates in two main ways: business-to-business (B2B) transactions and tenders at KPBN.
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“Of the total 2,9 million tons CPO that PTPN produced, about 40 percent was sold by tender,” he said at the office of KPBN, Jakarta that Palmoilmagazine.com joined, Friday (31/5/2024).
Andrial emphasized every trade at the company was in tender and the buyers purchased based on every available bid. “Eventually CPO price was established by the tender. It always happens per day and the buyers are clear,” he said.
Chairman of POPSI, Pahala Sibuea said that there was stigma that KPBN was not transparent. By knowing the information from the company, the smallholders now understand that CPO tender at KPBN is market mechanism, based on supply and demands.
“KPBN was negative in the smallholders’ opinion. We are very lucky to get the information from KPBN directly. This would confirm the wrong assumption for all these years,” he said.
The meeting should also improve the smallholders’ perception about CPO trade mechanism and transparency at KPBN and escalate the smallholders’ trust to the markets. (T2)
