Indonesia Commodity and Derivatives Exchange (ICDX) Appointed as the Operator of Indonesia's CPO Exchange

JAKARTA – The Ministry of Trade of the Republic of Indonesia, through the Commodity Futures Trading Regulatory Agency (Bappebti), has officially designated the Indonesia Commodity and Derivatives Exchange (ICDX) as the operator of the Indonesian Crude Palm Oil (CPO) Exchange.

ICDX has received approval as the Operator of the Physical CPO Market from the Commodity Futures Trading Regulatory Agency (Bappebti). This approval is detailed in Bappebti Head Decision No. 1/Bappebti/SC-SCPO/10/2023, issued on October 9, 2023.

P. Giri Hatmoko, Head of Corporate Communication, affirmed "ICDX's full commitment to its role as the operator of the CPO physical market in compliance with the government's mandate,” he stated in an official release on Wednesday, October 11, 2023.

Giri Hatmoko continued by mentioning that ICDX would provide technical insights into trading mechanisms and more during the launch of the Indonesian CPO Exchange, in collaboration with the Ministry of Trade and Bappebti.

Previously, Tirta Karma Senjaya, Head of the Bureau of Development and Supervision of Commodity Futures Trading (PBK), had stated that the launch of the CPO Exchange was being coordinated with the schedule of the Minister of Trade and was anticipated to occur at the beginning of October.

“It is currently being coordinated with the Trade Minister's schedule and is expected to take place in early October,” he told on Wednesday, September 20, 2023.

Tirta also mentioned that at that time, there were already Commodity Futures Exchanges that had registered themselves as operators of the physical CPO market. However, he refrained from specifically naming those exchanges.

Previously, Bappebti had issued regulations concerning the procedures for trading in the physical crude palm oil (CPO) market at Commodity Futures Exchanges.

These regulations are outlined in the Commodity Futures Trading Regulatory Agency Regulation No. 7 of 2023. This regulation elucidates the requirements that Commodity Futures Exchanges must fulfill to become operators of the CPO market, including having a business permit, trading system, supervision mechanism, and reporting system necessary to manage trading in the physical CPO market.

Additionally, they must also possess the means to resolve disputes, rules and regulations for the physical CPO market, a physical CPO market committee, assess the conditions of the physical CPO market, and have written agreements and commitments with prospective buyers and sellers.

Trading in the Physical CPO Market at Commodity Futures Exchanges can only be conducted through Commodity Futures Exchanges that have obtained approval from Bappebti as CPO Exchanges. Buying and selling transactions in the Physical CPO Market are executed through an online electronic trading system owned by the CPO Exchange.