Indonesia to launch crude palm oil futures exchange on October 13
11/10/2023 (Times of India), Jakarta - Indonesia, the world's biggest palm oil exporter, will launch its crude palm oil (CPO) futures exchange mandatory, its chief regulator told Reuters on Wednesday.
Authorities in the South Asian Country had previously planned to make it mandatory for all CPO exports to go through the exchange, in order to drive global palm oil prices abd create benchmarks similar to those in Kuala Lumpur and Rotterdam.
"This future exchange will hopefully create the CPO price reference for Indonesia, so we can have data and create better policies related to the industry," Didid Noordiatmoko, head of the regulator BAPPEBTI, said in a phone interview.
The Indonesia Commodity and Derivatives Exchange (ICDX) has been appointed as the exchange, and transactions will be quoted in the rupiah currency, Didid said.
Although 12 companies have listed in the exchange, Didid said the exchange may not see any transactions immediately after the launch, adding that training will be conducted afterwards.
Most Indonesian palm oil exporters currently conduct sales directly with buyers without going through an exchange, while auctions held by state trading company KPB Nusantara only offers physical palm oil and not futures contracts.