Futures commodities bourse to start by early 2000
Futures commodities bourse to start by early 2000
JAKARTA (JP): Indonesia is set to establish by August its
first futures commodity exchange, which is to be operational
later this year or early next year, one of the exchange's
advocates said on Tuesday.
The vice chairman of the Federation of Indonesian Vegetable
Oils and Fats Associations, Tarmidzi Rangkuti, said 25 palm oil
and coffee exporters had grouped themselves into "promoters" to
set up the privately run Indonesian Commodity Exchange.
He said the group would accept 15 other companies to help
establish the exchange, he added that these companies did not
necessarily have to be in the agriculture business.
"Any enterprises can be the promoters, including securities
companies," he told a press briefing, also attended by Industry
and Trade Minister Rahardi Ramelan.
The 40 promoters would have to provide Rp 1 billion
(US$113,636) each in order to become shareholders of the
exchange, he said.
"We are sure that the amount would enable us to stay liquid
for the next three years," he said.
Rangkuti said the group of promoters needed about US$4 million
to install the exchange's software system, which will be provided
by TIBCO Financial Technologies Inc. (TFT), a subsidiary of
Reuters Plc.
Out of this amount, the group had already secured $300,000 in
grants brokered by the U.S.-based Trade and Development Agency.
Rangkuti added the new futures exchange would be located in
the 25th floor of the Menara Kadin building on Rasuna Said
Street, South Jakarta.
The government issued on Jan. 27 regulations on the
implementation of the commodity futures bourse and on the
exchange supervision.
It also issued on the same day a presidential decree that
determines coffee and palm oil as the first two commodities to be
traded in the bourse.
After the exchange is up and running, the current Indonesian
Commodities Exchange Agency (Bapebti) will act as the futures
exchange supervisory board.
Rahardi Ramelan said on Tuesday the government would
eventually add other commodities such as plywood, paper and pulp,
cocoa, coal, gold, shrimp, fish, corn, peanuts, soybeans, rice,
sugar, cement, and fertilizers to the bourse. (das)