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Trade Minister Wants Indonesia Set Its Price For Palm Oil Competing Malaysia

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Trade Minister Wants Indonesia Set Its Price For Palm Oil Competing Malaysia

Jakarta, Timerilis.com – The Ministry of Trade is targeting the Commodity Futures Trading Supervisory Agency (Bappebti) to establish a special palm oil commodity exchange by June 2023.

The goal is for Indonesia to have its reference price and no longer rely on the exchange of neighboring Malaysia. Since Indonesia is one of the largest palm oil producers in the world.

But unfortunately, Indonesia doesn’t have its commodity exchange and still follows the reference price of the neighboring Malaysian exchange.

Minister of Trade (Mendag) Zulkifli Hasan revealed, in the session of the Indonesia Maju Cabinet volume II, it was often mentioned Indonesia was still pegged to Malaysia.

“Several times in the cabinet meeting was mentioned. How come we who have our palm oil, follow Malaysia? The bad thing is Bappebti. We have Bappebti but we follow Malaysia,” he remarked at the opening of the virtual Bappepti Work Meeting, Thursday (19/01/23).

Therefore, Zulhas, Zulkifli Hasan’s nickname, said that he asked Bappebpti to establish its commodity exchange.

So that later Indonesia’s title as the largest palm oil producer in the world can be followed by a reference for reference prices for other countries.

“Immediately (publish) it, Mr. Didit (Acting Head of Beppepti). With all the authority we have, if possible, rubber, CPO, and coffee can already be in us (not matok in Malaysia). If possible, in June it can already be displayed on the screen that we have a price benchmark,” he said.

In addition to palm oil, Zulhas said the order plans to issue benchmark prices for other commodity exchanges such as rubber, coffee, and pepper.

Currently, he added, Indonesia only has a reference price for tin.

“Now the new one is tin. After palm oil, there will be rubber, coffee, and pepper. In the past, in Mr. Harto’s time, there was always the world price of coffee and pepper on the radio. But now we don’t have a benchmark. The authority that Bappebti has, we’ll keep on trying,” he said. (Eva)