Coffee Commodity Prepared to Enter the Futures Exchange
- 2023-04-05
- Posted by: Widyadhana Mufida
- Categories: Agriculture, News
The coffee commodity is being prepared to enter the futures exchange. This was conveyed by the Head of the Commodity Futures Trading Regulatory Agency (CoFTRA) of the Ministry of Trade Didid Noordiatmoko.
“Last week I went to Medan to meet with the Indonesian Coffee Exporters Association (AEKI). I asked them to enter the coffee futures exchange, but it’s still in the discussion process. But we will definitely do that,” Didid said at the 2023 Commodity Futures Trading Literacy event , in Jakarta (4/4/2023).
Reported by ekonomi.republika.co.id, Didid explained that Indonesia is one of the largest coffee producers in the world. Therefore, it is only natural that this commodity is included in the commodity futures exchange. According to him, Indonesia will have many advantages in joining the futures exchange.
Didid said that CoFTRA is currently focusing on palm oil (CPO) commodities. His party is working on these commodities with a target of June 2023.
“If this CPO has been made or you could say it has started running. Then I will focus on commodity number two, three, and so on. So I will work on them one by one first,” he explained.
CoFTRA noted that since 2020, both robusta and arabica coffee transactions on the Jakarta Futures Exchange have experienced a downward trend. Total Robusta coffee transactions in 2020 amounted to 410,259 lots, 489,142 lots in 2021, and decreased to 335,832 lots in 2022.
The same thing happened to Arabica coffee transactions in 2020 of 147,696 lots, down to 116,532 lots in 2021 and 82,855 in 2022. The decline in these transactions was inversely proportional to Indonesia’s coffee exports which experienced an upward trend. This is followed by the activity of the coffee industry which is currently growing rapidly.