Plans for commodities futures exchange continue<\/p>\n
JAKARTA (JP): The government is going ahead with its plan to
\nestablish a commodities futures exchange next year despite the
\ndeepening economic crisis.<\/p>\n
Arifin Lumban Gaol, the chairman of the Indonesian Commodities
\nExchange Agency (Bapebti), said the government was currently
\npreparing a legal infrastructure for the exchange.<\/p>\n
\"The futures trading is expected to be realized before 2000.
\nThe deliberation (of its legal structure) is currently in process
\nat the state secretariat,\" Arifin said.<\/p>\n
Arifin said the planned commodities exchange would be managed
\nby a private entity and operate under the 1997 futures exchange
\nlaw.<\/p>\n
\"Everything will depend on the private sector, which wants to
\nrun the futures trading exchange. The government would only
\nsupervise it,\" he was quoted by Antara as saying.<\/p>\n
Bapebti, which at present operates a conventional commodities
\nexchange, is likely to act as the futures exchange supervisory
\nboard when the exchange is fully operational.<\/p>\n
The supervisory board will be under the auspices of the
\nMinistry of Industry and Trade.<\/p>\n
Daily trading will be operated by exchange management and
\ncommodities clearing houses PT Kliring and PT Jaminan Bursa
\nKomoditi, and commodities traders and brokers will work under the
\ntwo institutions with commodity buyers.<\/p>\n
Arifin had said that trading activities in the planned
\ncommodities futures exchange would be open to all commodities.<\/p>\n
He said four Indonesian commodities had the potential to be
\ntraded on the futures exchange: coffee, crude palm oil, rubber
\nand cocoa.<\/p>\n
The government has planned to establish a futures exchange for
\nsome time but postponed it several times due to its controversy.<\/p>\n
Arifin said it was high time Indonesia had its own commodities
\nfutures market to improve economic efficiency and competitiveness
\namid free trade.<\/p>\n
He said futures trading was a worldwide trend in finance and
\ntrade which Indonesia should not avoid if it wanted to stay open
\nto globalization.<\/p>\n
He said Indonesia should not worry too much about the risks
\ninvolved in futures trading because strict law enforcement and
\ncontrol of the market could prevent such harmful practices.<\/p>\n
Commodities futures contracts are used as marketing tools for
\nproducers and investors to anticipate losses caused by price
\nfluctuations. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/plans-for-commodities-futures-exchange-continue-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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