Indonesia Will Have Its Own Palm Oil Stock Exchange

Minister of Trade Zulkifli Hasan revealed that Indonesia will have its own palm oil stock exchange. With the existence of the palm oil stock exchange, the export price of Indonesian palm oil will no longer refer to the trade price of Malaysia. This stock exchange is expected to be launched in July 2023.

“The palm oil exchange will be launched in June or July. It must be available no later than that,” he said at JS Luwansa Hotel (07/03/2023).

Reported by money.kompas.com, Head of the Commodity Futures Trading Regulatory Agency (Bappebti) Didit Noordiatmoko also gave his input. He explained that palm oil trading would be carried out through this stock exchange. This allows bargaining meetings between business actors.

“We hope that later there will be money to money. So the price will be formed transparently or price discovery. We hope this will be formed in two months after palm oil enters the stock market,” he said.

Didit explained, after price discovery is achieved through the palm oil stock exchange, it would produce a price reference at the end of the year. This price can be used for both domestic and export trade. In the future, this reference price will also be used in determining export duties to export levies by the government.

“If there is already a price discovery, we will make a price reference, that will be a reference for everyone not to see Rotterdam anymore,” he continued. He added that his party would also reach out to entrepreneurs, after this policy was implemented.