Futures commodity trading may start next year<\/p>\n
JAKARTA (JP): The government has begun working on the
\nimplementation of a law on the futures commodity exchange, which
\nis expected to start operating next year, an official said
\nyesterday.<\/p>\n
The chairman of Indonesian Commodity Exchange Board, Arifin
\nLumban Gaol, said the board had started to set up the legal
\nstructure on the implementation of the law, which was passed by
\nthe House of Representatives in December.<\/p>\n
\"We have met several times to establish the draft regulation
\non futures trading,\" Arifin said.<\/p>\n
He said he expected the setting-up process would be completed
\nwithin a year or two.<\/p>\n
\"This will be in line with our economic recovery, so the
\nbourse will be more dynamic then, compared to if we were to begin
\nduring the current crisis,\" he said.<\/p>\n
Minister of Industry and Trade Tunky Ariwibowo said earlier he
\nexpected the futures commodity exchange to begin before 2000.<\/p>\n
Arifin said a presidential decree would officially determine
\nwhich commodities would be traded, as well as the formation of
\nthe supervisory board of the futures exchange.<\/p>\n
The setting up of regulations and the legal structure of the
\ninstitution would be followed by the establishment of the futures
\ncommodity exchange, which would be managed by a private company.<\/p>\n
Coffee and palm oil will be the two main commodities to be
\nsold in the market. Others include rubber, pepper, cocoa,
\nplywood, shrimp, soybeans, cotton and clove.<\/p>\n
Futures trading will be overseen by the new supervisory board
\nwhich will be working under the authority of the Ministry of
\nIndustry and Trade.<\/p>\n
Daily trading will be operated by bourse management and
\ncommodities clearing house PT Kliring dan Jaminan Bursa Komoditi,
\nand commodity traders and brokers will work under the two
\ninstitutions with commodity buyers.<\/p>\n
The board will also set up a separate division called Sentra
\nDana Berjangka within the market, which will manage the funds of
\nbuyers with less capital.<\/p>\n
\"Sentra Dana Berjangka is equal to mutual funds in the stock
\nmarket, it will pool the funds of small buyers and invest them,\"
\nhe said.<\/p>\n
Arifin said the board received a lot of technical assistance
\nfrom foreign parties to establish the exchange market.<\/p>\n
The United States Agency for International Development has
\nsent Joseph Dial, a former member of the supervisory board of the
\nUnited States Commodities Futures Trading Commission, to
\nIndonesia to help assist the board from Jan. 15 to Jan. 21, he
\nsaid.<\/p>\n
The organization would also send four more consultants to help
\nthe board, he said.<\/p>\n
He said the bourse's supervisory board would also get
\nassistance from the United Nations Conference on Trade and
\nDevelopment, the Asian Development Bank, the World Bank, and
\nAustralia Aid. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/futures-commodity-trading-may-start-next-year-1447893297",
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"sponsor": "Okusi Associates",
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