Futures commodities exchange receives poor response<\/p>\n
JAKARTA (JP): The Jakarta Futures Exchange, the country's
\nfirst futures commodities bourse, has received a poor response
\nfrom investors since the commencement of its operations in
\nDecember of last year.<\/p>\n
Ridwan Kurnaen, the chairman of the Commodities Futures
\nExchange Supervisory Board (Bappebti), said on Monday that the
\nlack of interest was partly due to the low public awareness of
\nthe bourse's potential.<\/p>\n
He said that the transaction volume recorded by the exchange
\nwas very small with an average of 7 lots a day for olein and 3
\nlots a day for robusta coffee.<\/p>\n
With such transaction values, the new exchange would not be
\nable to survive or to serve as a benchmark for the country's
\ncommodities market, he said at a futures trading workshop.<\/p>\n
From the start of its operations on Dec. 15 until Jan. 25, the
\nexchange booked transactions of only 218 lots or 4,360 tons of
\nolein, and 91 lots or 455 tons of robusta coffee.<\/p>\n
One lot comprised 20 tons of olein and 5 tons of robusta
\ncoffee.<\/p>\n
JFX director J.W. Sudomo said many investors or traders were
\nstill reluctant to enter the market until the exchange proved
\nitself capable of promoting fair and transparent trading
\nactivities.<\/p>\n
\"In addition, the people who are well satisfied with an
\nestablished exchange will be more reluctant to trade elsewhere,\"
\nhe said at the workshop.<\/p>\n
Sudomo explained that a sluggish start was commonplace in
\nbourses, and that people should not expect a newly established
\nbourse to achieve success overnight.<\/p>\n
Sudomo cited the development of the Jakarta Stock Exchange
\nwhich needed 15 years before it could operate effectively.<\/p>\n
The JFX was established in August 1999 but only began trading
\non Dec. 15 last year after a number of setbacks involving
\ntechnical and administrative problems. The bourse offered robusta
\ncoffee and olein as its initial commodities.<\/p>\n
Sudomo said that the limited number of products traded on the
\nbourse, currently still confined to olein and robusta coffee, has
\nalso contributed to the slow trading.<\/p>\n
He said that the JFX felt inhibited by the law which
\nstipulates that the commodities traded on the bourse have to be
\napproved by Bappebti, and must be formalized by a presidential
\ndecree.<\/p>\n
\"But that is the law, a bad law that should be changed. In the
\nmeantime we will abide by it while screaming from the rooftops
\nfor a change,\" Sudomo said.<\/p>\n
To date, the government has approved the trading of six
\ncommodities: crude palm oil (CPO) including olein as its
\nderivative, coffee, pepper, cacao, plywood, and rubber.<\/p>\n
Sudomo said that the bourse is constantly keeping an eye out
\nfor potential commodities other than those already approved by
\nthe government.<\/p>\n
\"We will not ignore a commodity if there is a market for it
\njust because it hasn't been approved by the government,\" he said.<\/p>\n
However, a lack of publicity was not the reason why trading at
\nthe bourse had not picked up, Sudomo said, explaining that
\npublicity on its establishment needed time to sink in.<\/p>\n
\"We are not selling Lux soap, something that someone will
\nimmediately want to try out once it's advertised,\" Sudomo said.<\/p>\n
President of clearing house PT Kliring dan Jaminan Bursa
\nKomoditi Surdiyanto Suryodarmodjo said that he hoped that trading
\nwould pick up with the physical deliveries of the first contracts
\non Feb. 15.<\/p>\n
\"Many investors are waiting for this (physical delivery), to
\nsee whether or not it goes smoothly. Afterwards I hope there will
\nbe no more hesitation about investing on the JFX,\" he said.<\/p>\n
Concerns have been raised about how long the bourse can
\nsurvive, especially with its initial capital of around Rp 11
\nbillion being quickly diminished to Rp 6 billion because of the
\nrecurring delays in its operations.(tnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/futures-commodities-exchange-receives-poor-response-1447893297",
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