KPBN promotes Indonesia to become a reference for determining world CPO prices

PTPN chief executive Rahmanto Amin Jatmiko said that Indonesia is the world's largest palm oil producer, but that at present global palm oil industry players are referencing two main exchanges, MDEX in Malaysia and Rotterdam in the Netherlands. `We are determined, we have initiated steps for Indonesia to make its mark on the dynamics of world CPO price formation through the KPBN's commodity exchange,` said Rahmanto in a statement received in Jakarta on Thursday. Since 1968 KPBN, a subsidiary of holding company PT Perkebunan Nusantara III (PTPN) has been organizing the CPO exchange for palm oil industry players in Indonesia. The KPBN's daily palm oil exchange has become a reference for the Agriculture Ministry as the benchmark for the price of fresh fruit bunches (TBS) from oil palm farmers, as well as for the Ministry for Energy and Mineral Resources (ESDM) as a reference for biodiesel subsidy. Rahmanto explained that the initial step to realize the aspiration of making Indonesia a reference point for forming global CPO benchmark prices has been to collaborate with two international media companies, Reuters and Bloomberg. According to him, the collaboration has also become one of KPBN's strategic endeavors to introduce itself to the international community in order to realize Indonesia's role as a benchmark for global palm oil commodity prices. `One of the benefits of this collaboration will be that prices formed on the KPBN Commodity Exchange will be featured on the Bloomberg and Reuters (Refinitiv) system terminals, alongside information from other main global exchanges, so that they can be accessed by interested parties not only in Indonesia, but also around the world,` said Rahmanto. He further said that within the next two years, they are targeting for private producers to play a greater role in the KPBN exchange ecosystem platform. As KPBN's parent company, PT Perkebunan Nusantara III fully supports the initiative to make Indonesia the reference for forming the global CPO benchmark and to become a reference for palm oil commodity prices. Source : https://www.antaranews.com/berita/3221693/kpbn-dorong-indonesia-jadi-rujukan-pembentukan-harga-acuan-cpo-dunia