Heaptalk, Jakarta — Since its launch on Friday (10/13), the Crude Palm Oil (CPO) futures exchange transactions are still low. To overcome this problem, the Head of the Commodity Futures Trading Supervisory Agency (CoFTRA), Didid Noordiatmoko, has performed a surefire scheme to increase transactions.
“Like a newborn baby, the CPO stock exchange is still incubating. Even though it has been launched, we still need to implement several improvements to elevate the transaction value,” Didid affirmed.
In more detail, Didid elaborated that his party continues to make improvements related to the exchange’s rules and regulations (PTT), which are expected to operate adequately. Apart from amplifying the needed policy, he also claimed that Indonesia’s CoFTRA also continues to monitor incentives for the CPO exchange directly.
“In attaining this target, Indonesia’s CPO Exchange must continue to be improved to simplify for exchange and potential participants to understand its mechanisms. Besides, crude palm oil entrepreneurs are also expected to transact on the CPO exchange by offering various incentives,” Didid explained.
During the press conference, Didid also conveyed that the CoFTRA entity is targeting the CPO exchange price to become credible to realize a price reference in the early semester of 2024. He claimed this price would be a fair and real-time reference price both upstream and downstream.
Based on his statement, this price will prevail for large-scale and small-scale CPO producers. Closing his remarks, Didid invited small-scale CPO farmers to join this exchange to take advantage of more transparent and profitable prices.
Previously, Didid revealed that the exchange noted only one transaction in the early trading session. In this session, the CPO exchange recorded buying and selling transactions totaling four lots, or around 100 metric tons. As is well known, one lot consists of 25 metric tons. With a price discovery of Rp11,305 per kg, Indonesia’s CoFTRA recorded that the total transaction value had reached Rp1.13 billion.
Translated by Syifa
