05/04/2011 (Tempo Interaktif) - A reference price to determine crude palm oil (CPO) exit duties using local stock exchange is considered to be the best method. According to Fadhil Hasan, the Executive Director of the Indonesia Palm Oil Entrepreneurs, the exit duties could be determined by using a reference price based on the rupiah.

In addition, the fluctuation in international trade will not have an impact on determining the exit duties. “It could push Indonesia’s commodity trading to become the world’s CPO price reference,” he said, yesterday.
The exit duties applied to CPO was first implemented to secure cooking oil supplies and stabilize domestic prices. But the instrument is also aimed at putting the brakes on exports so the CPO can be processed domestically.

So far, the exit duties are determined by the price referred to by the Rotterdam Stock Exchange in the Netherlands. Meanwhile, there are two futures trading centers in Indonesia, the Indonesian Commodity and Derivative Exchange (ICDX) and the Jakarta Futures Exchange.