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GAPKI Sees New Palm Bourse Positive, But Must Be Competitive

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JAKARTA –- The Indonesian Palm Oil Association (GAPKI) has responded to the government’s plan to establish the Indonesian Minerals and Strategic Commodities Exchange, which is targeted to begin operations since 01 January 2027. The exchange set to be named the Indonesia Commodity Exchange (Icomex) has the potential to trade various key national commodities, including crude palm oil (CPO), nickel, and coal.

GAPKI Chairman Eddy Martono said that basically Indonesia’s palm oil industry has a trading facility through the Indonesia Commodity and Derivatives Exchange (ICDX). But until now, the volume of palm oil transactions in the exchange is relatively limited compared to direct trading among the business players.

“Actually, there has been an exchange of palm oil called ICDX, but its transaction volume is still small,” Eddy Martono told detik.com on Wednesday (19/8/2026).

CPO transactions still dominated by Business to Business (B2B) scheme

According to Eddy, Indonesia’s CPO trade has largely been conducted through business-to-business (B2B) mechanisms. This is because the majority of palm oil plantation companies are not direct exporters.

The output from many plantation companies is considered insufficient to achieve the economic scale required for independent exporting. Consequently, exporting companies typically purchase supplies from various plantation companies before exporting to international markets.

In addition to purchasing from third parties, exporting companies also utilize production from their own plantations to meet global market demand.

“Transactions at present are indeed predominantly B2B because most palm oil companies are not exporters. Their production volumes are not economically viable for export. So, if those companies want to export, they first have to purchase from other plantation companies to add to their own production that will then allow them to export,” Eddy explained.

Why B2B Transactions remain top choices in palm industry?

GAPKI considers B2B transactions can still offer several advantages, particularly for small and medium-sized oil palm plantation companies.

In practice, buyers can make upfront payments of up to 100%, while the delivery of goods typically takes place within one to two weeks. This arrangement is still categorized as a spot market transaction, making it more flexible and attractive to business players.

This scheme also provides payment certainty and facilitates the management of corporate cash flow, especially amidst the fluctuations in crude palm oil (CPO) prices driven by global market dynamics.

New commodity exchange seen positive, but should be competitive

GAPKI has stated that it has no objection to the government’s plan to establish a new commodity exchange. However, the organization representing the national palm oil industry emphasized that the new exchange must be capable of delivering added value and competing with existing exchanges.

According to Eddy, a primary objective of a commodity exchange is to ensure price transparency. Yet, current prices for CPO and palm oil derivatives are already quite transparent, as they are determined by open market mechanisms.

“There is no problem with the plan to establish another exchange. But the key is that it must be able to compete with existing ones. In reality, current pricing is already transparent,” he said.

Govt considers to include CPO, Nickel, and coal into Icomex

Previously, State Secretary Prasetyo Hadi revealed that several of Indonesia’s strategic commodities are being considered for trading on the new exchange.

The commodities mentioned include:

  • Crude Palm Oil (CPO)
  • Nickel
  • Coal
  • Other strategic mineral commodities

However, the government is still deliberating on exactly which commodities will be included in the exchange’s trading scheme.

“Not yet; nothing has been decided. What is certain is that they will be our primary commodities for instance, CPO, nickel, and coal,” said Prasetyo Hadi at the Presidential Palace Complex in Jakarta on Monday (17 August 2026).

When asked about the trading concepts and mechanisms to be implemented, Prasetyo did not provide further details. However, he did reveal the name of the exchange currently being prepared by the government: the Indonesia Commodity Exchange (Icomex).

Opportunities and challenges of RI’s CPO bourse in the future

The establishment of a Minerals and Strategic Commodities Exchange is considered a crucial step toward strengthening Indonesia’s position as a leading global producer of various commodities, including palm oil.

However, the success of this new exchange will depend on several factors, such as:

  • High trading liquidity.
  • Active participation by industry players.
  • Cost-efficient transactions.
  • Ease of access for plantation companies and exporters.
  • The ability to establish credible global price benchmarks.

For the national palm oil industry, the primary challenge lies in driving a higher volume of transactions through the exchange without compromising the flexibility currently afforded by B2B trading mechanisms.

As the world’s largest producer and exporter of palm oil, Indonesia has a significant opportunity to position Icomex as a strategic commodity trading hub one capable of boosting national competitiveness while simultaneously reinforcing the standing of Indonesia’s CPO reference prices in the international market. (*)

detikcom. Sawit Bakal Masuk Bursa Mineral, Begini Respons Pengusaha. https://finance.detik.com/industri/d-8625151/sawit-bakal-masuk-bursa-mineral-begini-respons-pengusaha

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