JAKARTA – The Commodities Futures Exchange Supervisory Board (Bappebti) is optimistic that it will launch the palm oil futures exchange in June this year. The futures exchange is expected to become a benchmark price setter for the crude palm oil (CPO) of Indonesia, which is the world’s biggest producer and exporter of palm oil.
Bappebti Chairman Didid Noordiatmoko said that the palm oil futures exchange and the trade ministry are finalizing a trade ministry regulation (Permendag) that will become the legal basis for the operation of the exchange. “We hope the regulation will be issued soon and then we’ll launch the exchange. Trade Minister Zulkifli Hasan has stated that the launching still sticks to the schedule in June this year. I’ll do my best to launch it in June,” Didid said during a press conference in the office building of Bappebti in Jakarta on Friday, 19 May 2023.
Didid said that what should be underlined is that the exchange is only aimed as benchmark price for the export of CPO with the code of HS 15.111.000. The CPO production sold at domestic market will not be routed through the exchange.
The policy has been also consulted with the foreign trade directorate general and the trade policy board (BK Perdag) of the trade ministry. “We’ve seen a number of practices in Malaysia that creates benchmark price for CPO, so that it will be easier for us,” he said.
According to him, Bappebti is still collecting data of palm oil exporters that will become members of the futures exchange. The exchange is open for all palm oil players who already meet the requirements, which include compliance with the domestic market obligation (DMO).
Didid said that Bappebti has also undertaken a public test in the agriculture ministry, industry ministry, finance ministry, palm oil exporters, smallholders and other industry players. It is necessary for the Regulatory Impact Assessment (RIA) of the CPO futures exchange.
“We’ve undertaken a public test for the policy among many stakeholders. If the CPO traded at the exchange, then there will be transparency of prices between sellers and buyers,” he said. (*)
Source: tirto.id
