Oil palm farmers in Indonesia supports the government's move to create its own price reference

Published 2023년 1월 25일

Tridge summary

The Indonesian Palm Oil Growers Association (Apkasindo) has endorsed the government's decision to launch a palm oil commodity exchange. The move is aimed at establishing Indonesia as a reference point for global palm oil price developments, addressing the current disconnect despite the country's status as the world's largest producer. The exchange, set to launch in June 2023, is expected to provide more accurate market prices for farmers and stakeholders, addressing the uncertainty caused by the current pricing methods. Additionally, the association highlighted the need for a national price reference to address the gap between production costs and the prices received by farmers.

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Original content

REPUBLIKA.CO.ID, JAKARTA -- The Indonesian Palm Oil Growers Association (Apkasindo) fully supports the government's move to create its own palm oil commodity exchange. The general chairman of Apkasindo, Gulat Manurung, said that since the 1990s the development of the palm oil industry has been increasing rapidly in Indonesia. However, despite being the world's largest producer of palm oil, Indonesia has not become the world's reference for palm oil price developments. "It's been neglected for quite a long time and we are following suit with Malaysia. So the futures exchange is a must," said Gulat in Jakarta, Wednesday (25/1/2023). He admitted that he was surprised when he heard that the government wanted to create a palm oil commodity exchange and that it was targeted to start in June 2023. However, according to Gulat, this plan would likely encounter interference from parties with palm oil business interests. According to Gulat, the existence of the Indonesian palm commodity ...

Source: Republika