Indonesia launches palm oil exchange to rival Malaysia benchmark

Regulator says voluntary bourse will provide 'transparent' transactions

Trade Minister Zulkifli Hasan, center, and other officials launch Indonesia's crude palm oil exchange on Oct. 13. The country is the world's largest producer and exporter of the commodity.

ISMI DAMAYANTI and ERWIDA MAULIA, Nikkei staff writers

October 13, 2023 17:29 JST

JAKARTA -- Indonesia on Friday launched its own crude palm oil (CPO) futures exchange as the world's biggest exporter of the commodity seeks better price transparency at home and, over the long term, to possibly challenge the globe's two widely used price benchmarks.

The Indonesia Commodity and Derivatives Exchange (ICDX) runs the new CPO bourse, having recently obtained approval from state regulator Bappebti. Bappebti head Didid Noordiatmoko said 18 local CPO producers have so far registered to participate in trading. Transactions are targeted to fully start on Oct. 23.