USLI WELCOMES INDONESIA CPO EXCHANGE EXPECTED TO DETERMINE PALM OIL PRICES
17 October 2023
Deputy Chairman of the North Sumatra Association of Indonesian Employers (APINDOSU) for Plantations and Agriculture, Usli Sarsi, welcomed the presence of the Indonesia Crude Palm Oil (CPO) Exchange. As the world's largest CPO producer, Indonesia has entered a new phase in its palm oil industry by having its own price reference. Usli Sarsi emphasized the importance of this step, although acknowledging that building this system will take a long time.
According to the Rector of MTU University, Dr. Dompak Pasaribu, S.E., M.Si, CPA, CACP, this assistance aims to make MTU University the best educational institution at the national level in every field, supported by strong technology and information. With this assistance, it is hoped that the university can organize higher education in a professional and competitive manner based on the values and principles of good governance.
The Indonesian CPO Exchange is scheduled to begin operations on October 23, 2023. This move is expected to make Indonesia a global determinant of palm oil prices. According to data from the Ministry of Trade, Indonesia's CPO exports in 2022 reached nearly 47 million tons with a value of US$29.62 billion.
However, so far Indonesia's benchmark CPO price has been dependent on prices from the Rotterdam and Malaysian exchanges. The establishment of the Indonesian CPO Exchange will give the country more control over the global CPO market.
Information obtained by Usli Sarsi, there are currently 18 CPO business actors who have joined, this shows the enthusiasm and strong desire of business actors to realize fairer and more transparent CPO trade.
“Usli Sarsi emphasized that the purpose of the Indonesian CPO Exchange is not to compete with Malaysia, but to provide Indonesia with its own benchmark price that better reflects domestic needs.
While the Government acts as a facilitator, the active participation of CPO entrepreneurs is expected to make a positive contribution in realizing Indonesia's goal as the world's CPO barometer.
“With this step, Indonesia solidifies its position as a global leader in the palm oil industry, while providing significant economic benefits to the country and local businesses,” he said.