JAKARTA Dec 18 The Jakarta Futures Exchange
(JFX) has received government backing to launch coffee and
rubber futures contracts, a regulatory official said on
Wednesday, as Indonesia moves to secure itself a bigger role in
Indonesia is the world's biggest exporter of refined tin,
nickel ore and thermal coal, the biggest grower of palm and the
second-largest producer of rubber and robusta.
In recent years Southeast Asia's largest economy has
launched several commodity contracts, with limited success due
to a failure to attract liquidity. But an Aug. 30 rule forcing
tin producers to trade on a domestic exchange before shipping
could change this.
"COFTRA will boost commodity futures trading at local
exchanges in an effort to create price references locally and to
provide services for commodity business people in hedging their
commodities," Sutriono Edi, head of Indonesia's Commodity
Futures Trading Regulatory Agency (COFTRA) told Reuters.
"For this we have approved two new commodity contracts --
coffee and rubber -- to be traded on the Jakarta Futures
Exchange," he added.
"Hopefully we will also approve a coal contract early next
year for the JFX."
To ensure domestic supplies and boost downstream industries,
Indonesia sets a monthly export tax for cocoa beans and crude
palm oil, calculated on the basis of both domestic and
Edi reiterated the agency's commitment to approve only one
exchange for each commodity, citing the Indonesia Commodity &
Derivatives Exchange's (ICDX) physical tin contract.
"It will be difficult to take a price reference if there are
two exchanges or more that trade the same contract," he added.
"ICDX will keep trading tin because it has been successful ...
both in volume and price, which keep increasing."
The ICDX plans to build on its physical tin contract by next
year offering tin futures it hopes could help win trade from the
London Metal Exchange.
(Reporting by Yayat Supriatna; Writing by Michael Taylor;
Editing by Clarence Fernandez)