The Indonesian Commodity and Derivatives Exchange (ICDX) has been granted official approval to operate the Crude Palm Oil (CPO) Exchange, marking a significant development in the country’s commodity trading landscape. The launch of the Palm Oil Exchange was officially announced by the Commodity Futures Trading Supervisory Agency (BAPPEBTI).
The approval of ICDX as the operator for the CPO Exchange was formally issued through the Head of Bappebti’s Decision No. 1/Bappebti/SC-SCPO/10/2023 on October 9, 2023.
Giri Hatmoko, Head of Corporate Communication at ICDX, expressed the exchange’s full commitment to its role as the physical CPO market operator, as mandated by the government. On the other hand, Didid Noordiatmoko, the Head of BAPPEPTI, hopes that the exchange will bring about genuine fair and transparent price references for CPO.
Didid stated that ICDX, as the operator, will begin conducting outreach and training sessions starting on October 16, 2023. Already, 18 CPO companies are prepared to engage in trading through ICDX.
“ICDX will then address the technical aspects related to the trading mechanism and other related matters,” he said.
Didid has set a target for establishing a price reference by October 23, 2023. Determining the reference price is a concerted effort by the government to enhance the exchange’s credibility.
In line with the approval granted to ICDX, Arjun Ajwani, Research Analyst at Infovesta Kapital Advisori, noted that the price of CPO, like other commodities, will fluctuate based on the prevailing sentiment and outlook at the time. This includes factors such as supply and demand dynamics.
“If we look at commodities like CPO, they are under pressure due to the uncertain outlook, including issues related to China, as well as rising yields and high interest rates,” he commented on October 11, 2023.
