Futures commodities bourse to start by early 2000<\/p>\n
JAKARTA (JP): Indonesia is set to establish by August its
\nfirst futures commodity exchange, which is to be operational
\nlater this year or early next year, one of the exchange's
\nadvocates said on Tuesday.<\/p>\n
The vice chairman of the Federation of Indonesian Vegetable
\nOils and Fats Associations, Tarmidzi Rangkuti, said 25 palm oil
\nand coffee exporters had grouped themselves into \"promoters\" to
\nset up the privately run Indonesian Commodity Exchange.<\/p>\n
He said the group would accept 15 other companies to help
\nestablish the exchange, he added that these companies did not
\nnecessarily have to be in the agriculture business.<\/p>\n
\"Any enterprises can be the promoters, including securities
\ncompanies,\" he told a press briefing, also attended by Industry
\nand Trade Minister Rahardi Ramelan.<\/p>\n
The 40 promoters would have to provide Rp 1 billion
\n(US$113,636) each in order to become shareholders of the
\nexchange, he said.<\/p>\n
\"We are sure that the amount would enable us to stay liquid
\nfor the next three years,\" he said.<\/p>\n
Rangkuti said the group of promoters needed about US$4 million
\nto install the exchange's software system, which will be provided
\nby TIBCO Financial Technologies Inc. (TFT), a subsidiary of
\nReuters Plc.<\/p>\n
Out of this amount, the group had already secured $300,000 in
\ngrants brokered by the U.S.-based Trade and Development Agency.<\/p>\n
Rangkuti added the new futures exchange would be located in
\nthe 25th floor of the Menara Kadin building on Rasuna Said
\nStreet, South Jakarta.<\/p>\n
The government issued on Jan. 27 regulations on the
\nimplementation of the commodity futures bourse and on the
\nexchange supervision.<\/p>\n
It also issued on the same day a presidential decree that
\ndetermines coffee and palm oil as the first two commodities to be
\ntraded in the bourse.<\/p>\n
After the exchange is up and running, the current Indonesian
\nCommodities Exchange Agency (Bapebti) will act as the futures
\nexchange supervisory board.<\/p>\n
Rahardi Ramelan said on Tuesday the government would
\neventually add other commodities such as plywood, paper and pulp,
\ncocoa, coal, gold, shrimp, fish, corn, peanuts, soybeans, rice,
\nsugar, cement, and fertilizers to the bourse. (das)<\/p>",
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"sponsor": "Okusi Associates",
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