The world's largest palm oil producer, Indonesia, launched its crude palm oil (CPO) exchange on Friday, aiming to become a barometer of global prices, said Trade Minister Zulkifli Hasan.
While Indonesia produces 47 million tons of CPO per year with export figures reaching 30 billion U.S. dollars, more than 50 percent of world demand, so far, the country refers its sales to the stock exchange in Rotterdam and Malaysia.
"This exchange is to strengthen CPO trading performance with transparent, fair, accountable and real-time reference prices," Hasan explained the purpose of establishing the exchange.
The Indonesia Commodity and Derivatives Exchange (ICDX) has been appointed as the exchange, with the rupiah serving as the unit of account for all transactions.
Head of the Commodity Futures Trading Regulatory Agency, Didid Noordiatmoko, said that 18 palm oil companies had been listed on the stock exchange and other businesses. A total of around 600 operating in the country would follow in the near future.
The exchange will bring together many sellers and buyers on the same level playing field, and a series of training will be held afterwards, according to Noordiatmoko.
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