Developing Indonesian CPO Exchange, Government Prepares Tax Incentives

JAKARTA. The government prepares incentives for business actors who carry out trading transactions on the Indonesian Crude Palm Oil (CPO) exchange, including tax incentives.

Quoting Kontan.co.id, according to the Head of the Commodity Futures Trading Regulatory Agency (CoFTRA) for the 2022-2023 period, Didid Noordiatmoko, the tax incentives being prepared include reductions in taxes and export duties or other incentives.

However, the government has not yet confirmed the type of incentive that will be chosen, because it is still in the process of being discussed, by both the government and stakeholders.

Previously, on October 13, 2023, the government launched the Indonesian CPO exchange. The management is the organizer under the auspices of the Indonesia Commodity and Derivatives Exchange (ICDX).

Minister of Trade Zulkifli Hasan said that the Indonesian CPO exchange was a breakthrough made by the government through CoFTRA.

The aim is to improve CPO trading governance on the Futures Exchange. Considering that Indonesia's CPO contribution is above 50% of world demand, it does not yet have its own reference price.

So far, CPO trading transactions still refer to the CPO exchanges in Malaysia and Rotterdam, the Netherlands. However, apart from having its own CPO reference price, the Indonesian CPO exchange can also place Indonesia as a barometer for world CPO prices. (ASP/KEN)