Indonesia Could Be a Reference for Setting World CPO Reference Prices

KPBN's President Director Rahmanto Amin Jatmiko said that Indonesia is the world's largest producer of palm oil, but the current reference price used by palm oil industry players refers to the two major exchanges MDEX in Malaysia and Rotterdam in the Netherlands. `Creating Indonesia to color the dynamics of CPO world price formation via the commodity exchange available at KPBN is our determination and initiative,` said Rahmanto as quoted by Antara, Saturday (5/11/2022). Since 1968, KPBN, a subsidiary of holding company PT Perkebunan Nusantara III (PTPN), has organized a CPO exchange for palm oil industry players in Indonesia. KPBN's daily palm oil exchange has been a reference for the Ministry of Agriculture as a benchmark price for fresh fruit bunches (TBS) from palm oil farmers and the Ministry of Energy and Mineral Resources (ESDM) as a reference for biodiesel subsidies. Rahmanto explained that the initial step to realize the ambition of making Indonesia a reference for the formation of the world's palm oil reference price had begun with the collaboration with two international media companies, namely Reuters and Bloomberg. According to him, this collaboration is also one of KPBN's strategic efforts in introducing itself to the international world to make Indonesia a reference for global palm oil commodity prices. `One of the benefits of this collaboration is that the price formed from the KPBN Commodity Exchange appears on the Bloomberg or Reuters (Refinitive) system terminal platform and is juxtaposed with information from other major world exchanges, so that it can be accessed by interested parties not only in Indonesia but also throughout the world,` explained Rahmanto. He further said that in the next two years, his party targeted private producers to take a greater part in the KPBN exchange ecosystem platform. PT Perkebunan Nusantara III as KPBN's parent company fully supports the move to make Indonesia a reference for the formation of global CPO reference prices and a reference for palm oil commodity prices. Source: https://finance.detik.com/industri/d-6389016/ri-bisa-jadi-rujukan-pembentukan-harga-acuan-cpo-dunia/2