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E-Trading of Palm Oil to begin June 28th on JFE |
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“We will use the Indonesian price as a reference and to set export tariffs,” Bayu said. “We will provide all facilities step-by-step in a very short time.”
Indonesia is running well behind Malaysia, which operates the world’s most active market, trading as many as 20,000 futures contracts a day. Earlier this month, Bursa Malaysia launched three new indexes to track the performance of listed companies. Given the size and sophistication of the Malaysian market, it remains to be seen how quickly or effectively Indonesia will be able to compete.
Derom Bangun, vice chairman of the Indonesian Palm Oil Council, cautioned that in the beginning, it would be difficult for Indonesia to entice buyers to use its price and currency as a reference, but said it was a risk the country had to take if it wanted to control CPO pricing.
“Malaysia, as the world’s second-biggest CPO producer, has commodity trading and price references. Why can’t we do that?” he said on Friday. THE END
Source: The Jakarta Globe |
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