InfoSAWIT, JAKARTA – In the relevance with price control, if the exchange is established, according to Head of Exchange and Business Development of PT Kharisma Pemasaran Bersama (KPBN), Andrial Saputra said, Indonesia could not do it because the exchange should be independent and transparent to get trust.
“If in this case, one party – the government – wants to control the price, and use mechanism in the exchange, the answer is that it is a big mistake,” he recently said to InfoSAWIT.
Market price, in this case, the exchange, would run according to supply and demand mechanism, which means, controlling the price is not by establishing exchange but delivering additional policy which is dynamic. This means, the price can be seen to extremely increase or decrease.
Andrial mentioned that in 2021 to 2022, the price in Malaysian Derivative Exchange (MDEX) was in rally. The Government of Malaysia delivered palm cooking oil subsidy so that the end consumers would not get losses when the price was very expensive and in the same time, the producers are happy with the expensive price at the period.
The policy was implemented when the price extremely got cheaper and made the smallholders’ income decrease in Malaysia. The solution to control the price was not by establishing exchange.
Andrial admitted, CPO exchange establishment is good as part of CPO trade at this moment. The sales are mostly through auction or in person. In the same time, establishing exchange needs credibility and transparency to get trust. (T2)
