House of Representatives Supports Indonesia's Plan to Establish a Mineral Exchange

Jakarta - Commission XII of the Indonesian House of Representatives (DPR) supports the government’s plan to establish a national mineral and strategic commodity exchange, targeted to begin operations on 1 January 2027. This move is seen as a way to strengthen Indonesia’s position in the global commodity market.

Chairman of Commission XII Bambang Patijaya stated that the formation of a mineral exchange is an effort to minimise transfer pricing and under-invoicing practices in mineral commodity trading.

“This is part of the idea to minimise transfer pricing and under-invoicing. So, by having mineral trading on an exchange, it becomes more controlled,” Bambang told CNBC Indonesia.

He explained that this aligns with the government’s objective of establishing a single-door export concept for several strategic commodities such as crude palm oil (CPO), coal, and ferroalloy.

According to Bambang, both the single-door export policy and the mineral exchange share the same goal: creating a more transparent trading mechanism that better reflects market conditions.

“In a context that is more in line with market conditions, it can be done through the mineral exchange, which is essentially the same. There are several advantages if it can be implemented properly,” he said.

Bambang further noted that Indonesia already has two commodity exchanges, the Jakarta Futures Exchange (JFX) and the Indonesia Commodity and Derivatives Exchange (ICDX). However, a dedicated mineral exchange is considered capable of providing greater benefits for domestic mining commodities.

“Thus, we hope that the sales and exports conducted can directly influence international supply and demand. We know that the influential commodity exchanges in the world are the LME and the Shanghai Commodity Market,” he concluded.