Heaptalk, Jakarta — Indonesia’s Crude Palm Oil (CPO) exchange officially recorded its initial transaction, which attained US$71,145, or approximately Rp1.13 billion, last Friday. (10/20)
Previously, the Head of Indonesia’s Commodity Futures Trading Supervisory Agency (CoFTRA), Didid Noordiatmoko, targets transactions on the stock exchange, which will be initiated on Monday, October 23, 2023. However, he considered that the results would have been better if the CPO stock exchange had opened earlier.
Regarding the transaction report, he 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.
“We noted that around four lots have been traded. Meanwhile, one lot on the CPO exchange equals 25 metric tons of palm oil. In the first session, trading opened at Rp12,485 per kg and closed at Rp11,305 per kg. The minimal amount of transactions is normal as this output is only accomplished in the first trading. We look forward to the results continue to improve in the second session.” Didid said in his statement during the press conference held by the Indonesia Commodity and Derivatives Exchange (ICDX) Group.
In his further statement, Didid conveyed that around three trading sessions occurred in the CPO exchange per day, consisting of the initial session (10.00 AM – 11.00 AM), the second trading session (04.00 PM – 05.00 PM), and the third session (08.00 PM – 09.00 PM).
With the initial trading of this CPO exchange, Didid expects to establish a price reference in the CPO trading in the early quarter (Q1) 2024. He claimed that regulation makers, such as regional governments, the Ministry of Agriculture, the Ministry of Trade, the Director General of Taxes, and the Ministry of Energy and Mineral Resources, can use this price reference.
“The issuance of the prices reference only as benchmark nationwide, and we will not force companies to implement this point. Malaysia has also never forced its HPE to be used in Indonesia. This matter is precisely the intention we want to switch,” Didid conveyed.
Translated by Syifa
