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Indonesia unveils palm oil futures trading platform
The regulator aims for activity on the new platform to begin later this month and a reference price to be set in the first quarter of 2024.
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Trade Ministry expert staff member for international trade agreements Bara Khrisna Hasibuan (left to right), Trade Ministry secretary Suhanto, Trade Minister Zulkifli Hasan, Futures Exchange Supervisory Board (Bappebti) head Didid Noordiatmoko and Indonesia Commodity and Derivatives Exchange (ICDX) president director Nursalam launch a crude palm oil (CPO) futures exchange in a ceremony at Hotel Mulia in Jakarta on Oct. 13, 2023. (The Jakarta Post/-)
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ndonesia, the world’s largest palm oil exporter, has launched a crude palm oil (CPO) futures trading platform with the aim of establishing a domestic reference price in the first quarter of next year.
“The goal is to have a CPO reference price that is transparent, accountable, real-time and that also creates a level playing field,” Futures Exchange Supervisory Board (Bappebti) head Didid Noordiatmoko said during the launch event in Jakarta on Friday.
The platform is based on Bappebti Regulation No. 7/2023, issued last month, and will be run by the Indonesia Commodity and Derivatives Exchange (ICDX).
Beginning on Oct. 23, it will log local CPO trades in rupiah, offering real-time price updates.
It would serve as a benchmark for both domestic and international palm oil prices, Didid said, with potential applications in areas such as taxation, subsidies and biodiesel pricing.
“Bappebti hopes that the price discovery process can occur until the end of the year,” he added.
Trade Minister Zulkifli Hasan, who attended the event, said the exchange would empower the country to establish its own benchmark, highlighting its position as the world’s largest CPO producer.
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