House finally passes futures exchange bill
JAKARTA (JP): The House of Representatives passed the long awaited futures exchange bill into law yesterday after a long debate with the government.
Minister of Trade and Industry Tunky Ariwibowo said the government would prepare a set of rulings for the implementation of the new law.
He said a new ruling would also be needed to support the establishment of the Futures Exchange Supervisory Board (Bappebti) and its supporting institutions.
"There are a lot of benefits to be gained by the public from a futures exchange in Indonesia. It will provide price information, instruments to minimize price risks and quality standardization as well as funds for the public," Tunky said after the bill's endorsement.
He was optimistic the bourse would be successful, saying several associations had agreed to trade their commodities on the bourse in a big volume.
"We hope the futures exchange in Indonesia will start before the year 2000," he said.
Debate on the futures commodity trading bill had become lengthy because legislators and the government failed to reach an agreement over the ministerial decree No: 393/1996.
The bill was submitted in December, 1996.
The ministerial decree, issued by the Minister of Industry and Trade last year, formed a team to prepare the establishment of a futures commodity exchange.
Decree
The decree stipulates that the team's members are government officials and members of the Association of Indonesian Coffee Exporters and the Federation of Edible Oil and Fats.
Legislators objected to the team's establishment, saying it should not precede the passing of the bill. They also accused the government of colluding with the private sector by involving company executives in the team.
Golkar, the Armed Forces (ABRI), the United Development Party (PPP), and Indonesian Democratic Party (PDI), launched again their critiques against the decree, which they said had given monopoly to certain parties over the planned bourse.
"The involvement of the two associations in the team could give the public a bad image of the futures exchange," said Maxandi of the ABRI faction.
"Therefore, the ABRI faction appreciates it if the government revises the ministerial decree in accordance with the futures exchange law," he said.
Tunky agreed to revise the decree but would not dissolve the team altogether.
Ahmadi Noor Supit of the Golkar faction also expressed the faction's regret over the protracted debate, but appreciated the government's willingness to revise the decree in accordance with the commodity exchange law endorsed yesterday.
Golkar called for some changes to the bill, including the admission of a clause stating that the only commodities which may be traded at the bourse were mining, agricultural and forestry.
"The Golkar faction believes that currency should not be traded on the Indonesian Futures Exchange because we are not yet prepared," said Ahmadi.
"Once Indonesia is prepared for currency trading in the future, trading won't occur on the futures exchange but in other bourses under the supervision of the Ministry of Finance," he said. (jsk)