{"id":31937,"date":"2026-08-29T15:55:11","date_gmt":"2026-08-29T08:55:11","guid":{"rendered":"https:\/\/gapki.id\/en\/?p=31937"},"modified":"2026-09-01T15:59:39","modified_gmt":"2026-09-01T08:59:39","slug":"gapki-sees-new-palm-bourse-positive-but-must-be-competitive","status":"publish","type":"post","link":"https:\/\/gapki.id\/en\/news\/2026\/08\/29\/gapki-sees-new-palm-bourse-positive-but-must-be-competitive\/","title":{"rendered":"GAPKI Sees New Palm Bourse Positive, But Must Be Competitive"},"content":{"rendered":"

JAKARTA \u2013- 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.<\/p>\n

GAPKI Chairman Eddy Martono said that basically Indonesia\u2019s 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.<\/p>\n

\u201cActually, there has been an exchange of palm oil called ICDX, but its transaction volume is still small,\u201d Eddy Martono told detik.com<\/em> on Wednesday (19\/8\/2026).<\/p>\n

CPO transactions still dominated by Business to Business (B2B) scheme<\/strong><\/h2>\n

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.<\/p>\n

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.<\/p>\n

In addition to purchasing from third parties, exporting companies also utilize production from their own plantations to meet global market demand.<\/p>\n

“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.<\/p>\n

Why B2B Transactions remain top choices in palm industry?<\/strong><\/h2>\n

GAPKI considers B2B transactions can still offer several advantages, particularly for small and medium-sized oil palm plantation companies.<\/p>\n

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.<\/p>\n

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.<\/p>\n

New commodity exchange seen positive, but should be competitive<\/strong><\/h2>\n

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.<\/p>\n

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.<\/p>\n

“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.<\/p>\n

Govt considers to include CPO, Nickel, and coal into Icomex<\/strong><\/h2>\n

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

The commodities mentioned include:<\/p>\n