Indonesia Wants Palm Oil Exporters to Trade on Local Exchanges
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Indonesia, the biggest palm oil supplier, is studying rules that would require exporters to trade at least some of their oil on local exchanges before shipping it overseas in order to improve control and data transparency.
The goal is to have a reference price for a specific palm oil product from the exchanges which can be used to calculate taxes and export levies, said Didid Noordiatmoko, acting head of the Commodity Futures Trading Regulatory Agency, known as Bappebti. It would also offer more clarity on supply and demand, helping efforts to ensure the local market is well supplied, he said.