Govt to submit bill on futures bourse<\/p>\n
JAKARTA (JP): The government will submit a bill on futures
\ncommodity trading later this month to the House of
\nRepresentatives, Commodity Exchange Board chairman Arifin Lumban
\nGaol said yesterday.<\/p>\n
\"We expect the bill will be approved by the House after four
\nmonths of debate,\" Gaol said at a futures-trading workshop.<\/p>\n
The bill would create the legal foundations for a domestic
\nfutures commodity market, which the government planned long ago
\nbut postponed because of its controversy.<\/p>\n
Many people have opposed the market, arguing it was gambling.<\/p>\n
Gaol said it was high time Indonesia had its own futures
\ncommodity market to improve economic efficiency and
\ncompetitiveness amid free trade.<\/p>\n
According to the proposed bill, the futures market will be
\noperated by private companies under the Commodity Exchange
\nBoard's supervision.<\/p>\n
Members of the Indonesian Coffee Exporters Association and
\nIndonesian Edible Oil Association Federation have agreed to
\noperate a futures bourse.<\/p>\n
Sparks Company of the United States was commissioned by the
\nIndonesian government, World Bank and two commodity associations
\nto study the feasibility of a domestic futures exchange.<\/p>\n
Sparks Company concluded a futures trading exchange would cost
\nbetween US$5 million and $10 million to set up and $1.5 million
\nto run each year.<\/p>\n
A break-even point could be reached in two to four years of
\noperation with fees for each transaction set between $2 and $5,
\nthe company said.<\/p>\n
Gaol said four Indonesian commodities had potential to be
\ntraded on the exchange: coffee, crude palm oil, rubber and cacao.<\/p>\n
But only the Indonesian Coffee Exporters Association and
\nIndonesian Edible Oil Association Federation have pledged full
\nsupport for the futures trading plan.<\/p>\n
\"But the bourse won't be monopolized by the two associations.
\nIf interested, other commodity producers would be allowed to sell
\ntheir produce there,\" Gaol said. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-submit-bill-on-futures-bourse-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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