Associations to sponsor futures trading bourse

Associations to sponsor futures trading bourse

JAKARTA (JP): Two local commodity associations will sponsor
the establishment of Indonesia's futures trading bourse, an
official said yesterday.

Chairman of the Indonesian Commodity Exchange Agency Arifin
Lumban Gaol said yesterday that the two are the Association of
Indonesian Coffee Exporters and the Indonesian Edible Oil
Association.

"They are currently preparing business plans for the
establishment of the bourse," Gaol was quoted by Antara as
saying.

He noted that the government welcomes the participation of
other related commodity associations in sponsoring the
establishment of the bourse as it will be a multicommodity
market.

After such a futures market is established, the Indonesian
Commodity Exchange Agency will then provide rulings and guarantee
a fair trading mechanism.

Gaol said that Minister of Trade and Industry Tunky Ariwibowo
instructed him to continue efforts for the establishment of the
futures commodity exchange.

He said the existence of such a commodity exchange will
benefit producers, exporters and manufacturers. By using and
trading futures contracts, they can reduce the risks of commodity
price fluctuations.

The commodity exchange currently manages only the physical
trading of coffee and natural rubber with deliveries of up to
three months. (rid)