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)