'Two associations may lead futures exchange'<\/p>\n
JAKARTA (JP): Analysts fear the coffee and edible oil
\nassociations could dominate the planned futures commodity
\nexchange at the expense of farmers' cooperatives.<\/p>\n
At yesterday's House of Representatives hearing with a special
\nteam the Golkar faction set up, lawyer Dimyati Hartono and trade
\nconsultant Rudy Lengkong said the commodity exchange bill had
\nloopholes which could allow the bourse to be dominated.<\/p>\n
Dimyati said House members should improve the bill's wording
\non information dissemination.<\/p>\n
"The bill should clearly state that information should be
\ndisseminated fairly and not controlled by certain groups of
\nbusiness," Dimyati said.<\/p>\n
Lengkong said article 11 of the bill should state who could be
\nan exchange member and the roles of farmers and small producers'
\ncooperatives.<\/p>\n
He asked if the Indonesian Coffee Exporters Association and
\nIndonesian Edible Oil Association Federation would let farmers
\nand small producers' cooperatives be members.<\/p>\n
"It is the fact that most associations have not yet satisfied
\nthe aspiration of small farmers and their policies often
\ncontradict farmers' wishes. Members of associations have become
\nprosperous but farmers remain poor," he said.<\/p>\n
Lengkong is a former Commodity Exchange Board chairman. The
\nboard is under the Ministry of Industry and Trade.<\/p>\n
When presenting the bill to the House Minister of Industry and
\nTrade Tunky Ariwibowo said although the bill was meant to protect
\nfarmers and small producers from price fluctuations and risk, it
\nwould be hard for them to have direct access to the futures
\nmarket because their businesses were too small and their
\nknowledge too limited.<\/p>\n
He hoped Indonesia's futures market would one day be useful to
\nfarmers and their cooperatives, like those in the U.S and Japan.<\/p>\n
"Updated information on prices provided by the futures market
\nhelps them decide when to produce and sell their products at a
\ndesired price," he said.<\/p>\n
Commodity exchange board chairman Arifin Lumban Gaol said
\ncoffee, crude palm oil rubber and cocoa had potential to be
\ntraded on the exchange.<\/p>\n
Indonesian Agriculture Economists Association chairman H.S.
\nDillon agreed farmers' businesses were too small to participate
\ndirectly in the exchange.<\/p>\n
He commended the government's initiative to present the bill
\nto the House, saying the bill would be the legal basis to
\nestablish the exchange.<\/p>\n
A futures commodity exchange would help create more
\ntransparent commodity pricing than the physical commodity market
\ndid, Dillon said.<\/p>\n
In futures markets, offers were made openly while in the
\nphysical trading with future deliveries, only buyers and sellers
\nknew the prices, he said.<\/p>\n
Only the Indonesian Coffee Exporters Association and
\nIndonesian Edible Oil Association Federation fully support the
\nplan.<\/p>\n
The exchange board manages the physical trading of coffee and
\nnatural rubber with deliveries of up to three months. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/two-associations-may-lead-futures-exchange-1447893297",
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"sponsor": "Okusi Associates",
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