Oil palm farmers in Indonesia supports the government's move to create its own price reference
RBD Palm Oil
Indonesia
Published Jan 26, 2023
Tridge summary
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).
Original content
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 exchange will also make it easier for farmers and palm oil business actors to obtain real prices that are in accordance with market conditions. So far, the palm oil industry has been oriented towards the auction price at the Dumai KPBN, which also refers to the Malaysian and Rotterdam stock exchanges. Meanwhile, the reference price issued by the Ministry of Trade is once every two weeks, so it takes too long. Gulat admits that these price references do not provide certainty to farmers as palm oil producers. "Nationally this is important, because it determines the real price. So far it's only the price of Malaysia, Rotterdam. Where is ...
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