Heaptalk, Jakarta — Acting Head of Indonesia’s CoFTRA, Kasan, conducts the dialogue session regarding Indonesia’s CPO Exchange in Jakarta. He revealed that CPO has a strategic role in encouraging Indonesian trade. The government recorded that CPO export value reached US$1.89 billion in October 2023, elevating around 2.59% compared to the former of US$1.84 billion in September 2023.
The Indonesian CPO Exchange launched in October 2023 will mean that Indonesia has its own Crude Palm Oil reference price. This effort is hoped to help the community, including farmers, obtain Fresh Fruit Bunches (FFB) improvements, which the Ministry of Agriculture will determine.
Meanwhile, Indonesia’s Minister of Trade, Zulkifli ‘Zulhas’ Hasan, conveyed that CPO trading on the stock exchange is expected to be a proper place for palm oil industries or factories to conquer commodity transactions at competitive prices. For this reason, the government would rectify the Crude Palm Oil trading in the archipelago by issuing Indonesia’s CoFTRA Regulation Number 7 of 2023 concerning the Futures Exchange Trading Governance.
“CPO trade policies must quickly adapt to dynamic market movements. This policy must also be ensured to support Indonesia as a barometer for its prices worldwide. We must optimize the economic and trade value of this industry for the welfare of the Indonesian people.” Zulhas said.
The Minister of Trade expected the Indonesian CPO Exchange to collaborate with the government and other stakeholders to enhance people’s literacy, hoping to boost CPO transaction value. His party will also regulate the CPO export governance to facilitate local entrepreneurs in the industry through the futures exchange of the Directorate General of Foreign Trade.
“Collaboration is a key. The Indonesian Crude Palm Oil exchange will become a price reference in Indonesia through collaboration with all stakeholders. The formation of this stock exchange should encourage the strengthening of crude palm oil trading and support Indonesia in becoming a global market influencer.” Trade Minister said.
Translated by Syifa
