JAKARTA (RambuEnergy.com) – As the largest crude palm oil (CPO) producer in the world, Indonesia should have its own benchmark CPO price. That has become a reality on Thursday (12/4) with the launching of the so-called the Indonesia CPO Index (ICPOI).
The ICPOI was officiated by the country’s Trade Ministry and will be managed by a private entity PT Indeks Komoditas Indonesia (IKI). The CPO Index was established in cooperation with the country’s Palm Oil Producers Association (GAPKI).
“The CPO benchmark price will encourage us not to be dependent on overseas CPO benchmark prices,” President Director of IKI Maydin Sipayung told reporters on Thursday at the launching ceremony.
So far, Indonesian CPO producers and traders refer the benchmark price to overseas CPO indices in particular Rotterdam and Malaysia.
Indonesia produces 38.17 million tons of CPO in 2017, representing 58.72% of the global CPO output of 65 million tons. Of this output, 31.5 million tons were exported.
In addition, to manage the CPO index, IKI has also managed the Indonesian Coal Index (ICI) since 2006. (*)
Written by Staff Writer, edited by Roffie Kurniawan, email: firstname.lastname@example.org