Jakarta –
Holding Perkebunan Nusantara supports the establishment of a domestic futures exchange as a reference price for Indonesian crude palm oil (CPO), which is being launched by the Government through the Ministry of Trade.
This was conveyed by the Marketing Director of PTPN III (Persero) Nusantara Plantation Holding, Dwi Sutoro, when he was a speaker at a seminar entitled “Strategy of Indonesia
Become a Barometer of World Palm Prices” in Jakarta, Thursday (2/02/2023).
Dwi said that Indonesia, as the world’s largest CPO producer, should have its own reference price.
“Because it uses the international CPO price as a reference for domestic CPO prices, it often does not balance supply and demand in the country, resulting in instability in domestic CPO prices,” he explained.
According to Dwi, the ideal CPO exchange is one that has a complete function, namely as price discovery, price reference, and hedging, from a process that is fair, efficient,
transparent and reliable.
“Of course, we must support and discuss the idea of building a trade system for Indonesian CPO commodities through the development of the Indonesian CPO exchange and discuss it as a step towards making Indonesia a world palm oil barometer,” he said.
Dwi further said that the establishment of a palm oil trade system must at least cover four aspects, including aspects of fairness, efficiency, added value, and
continuity.
“The involvement of the government, BUMN and the private sector is expected to create positive synergies in designing a fair, efficient, transparent and reliable Indonesian palm oil trade system,” he said.
Meanwhile, Deputy for Food and Agribusiness Coordination at the Coordinating Ministry for Economic Affairs, Musdalifah Mahmud, said that realizing Indonesia as a barometer of world palm oil prices is no longer just a dream.
“But God willing, it will be achieved soon,” he said.
Currently, said Musdalifah, Indonesia is a country that contributes 55 percent of the world’s palm oil and 42 percent of the world’s vegetable oil. Therefore, he is optimistic, if Indonesia can soon become a barometer of world palm prices.
“Moreover, with the consistent application of B35, the stability of palm oil prices is also increasingly maintained,” he said.
(dna/dna)
