Indonesia's crude palm oil (CPO) reference price based on futures is expected to be ready by next year's first quarter, according to commodity futures trading regulator Bappebti.
The world's largest palm oil producer will no longer refer to Malaysia and Rotterdam CPO prices for its bi-weekly CPO reference price, said the trade ministry.
Indonesia currently sets its reference price using Bursa Malaysia benchmark CPO futures and delivered CPO prices to the Netherlands' Rotterdam in an unpublished formula.
The latest reference price for second-half October was set at $740.67/tThe country launched its CPO futures exchange on 13 October, operated by the Indonesia Commodity and Derivatives Exchange.
Trading is expected to begin on 23 October, according to the head of Bappebti Didid Noordiatmoko. It will not be mandatory, although 18 CPO businesses are ready to trade through the new exchange.
