Indonesia’s KPBN Seeks to Take Part in Making Global CPO Price

The Jakarta Globe
November 3, 2022 | 11:40 pm
SHARE

Bali. Kharisma Pemasaran Bersama Nusantara or KPBN aims to make Indonesia take part in the dynamics of forming the global price of crude palm oil or CPO, and also become the price reference for both the domestic and global market, according to the company’s president director Rahmanto Amin Jatmiko.

Although Indonesia is the world’s largest palm oil producer, global industry players still refer to Malaysia’s MDEX and the Rotterdam Exchange in the Netherlands. 

KPBN has held CPO commodity exchanges for palm oil industry players in Indonesia since 1968. Its daily commodity exchange of CPO has become an integral part of making CPO prices in the country. Also, the Agriculture Ministry relies on KPBN as a benchmark for fresh fruit bunch prices from oil palm farmers. And the Energy Ministry has treated it as a reference for biodiesel subsidies.

"The upcoming program is establishing Indonesia to participate in coloring the dynamics of forming world CPO price through the activity of commodity exchanges held by KPBN, that is our determination and initiative," Rahmanto said in a statement on Thursday.

As an initial step, KPBN has teamed up with international news outlets Reuters and Bloomberg. 

"One of the benefits of this collaboration is that the prices formed through KPBN Commodity Exchange will appear on the terminal system platform from Bloomberg and Reuters, and side by side with information from other major world exchanges, making it possible to be accessed by interested parties not only in Indonesia but also worldwide,” Rahmanto said.

Rahmanto added that he hoped the collaboration could help strengthen KPBN’s footing both on the national and international levels, as it seeks to become one of the world-class plantation commodity exchanges.

"In the next two years, not only PTPN Group but also we are targeting private sector producers to take a bigger share in KPBN’s commodity exchange ecosystem platform," Rahmanto said.

KPBN is a subsidiary of the state-owned plantation holding company PTPN III. Commenting on this initiative, Holding Perkebunan Nusantara PTPN III president director Abdul Ghani said that the company fully supported KPBN in becoming a price reference for palm oil commodities in Indonesia. 

“We are aiming that the collaboration with Reuters and Bloomberg can generate a positive impact, thus the business climate of the palm oil industry in Indonesia can strengthen the economy as a whole," he said.

Tags: Keywords:
SHARE

The Latest


News 5 hours ago

Iranian Missile Strikes Show Israel's Aerial Defense Array Is Not Ironclad

Too many projectiles launched at once can overwhelm the system, which relies on technology and human decision-making to be effective.
Business 5 hours ago

Russia Ready to Boost Oil Supplies to Indonesia, Putin Tells Prabowo

Putin tells Prabowo that Russia is ready to ramp up oil and LNG supplies to Indonesia.
Business 5 hours ago

Indonesia’s Bumi Resources to Acquire Australian Gold and Copper Miner Wolfram Limited

The acquisition is Bumi's strategic move to expand into critical minerals amid growing global demand for green energy transition metals.
Business 6 hours ago

Morowali Industrial Park Pledges Reforms After Environmental Warning from Minister

Despite the setback, Dedy stressed that IMIP uses advanced technology to reduce emissions from its nickel smelters.
Business 7 hours ago

Russia's Economy Minister Says the Country Is on 'The Brink of Recession'

High defense spending has propelled growth and kept unemployment low in Russia despite fueling inflation.
COPYRIGHT © 2025 JAKARTA GLOBE. ALL RIGHTS RESERVED