Indonesia Could Become Global Commodity Price Setter, Here Are the Conditions
Indonesia has the opportunity to become a global commodity price reference in the coming months. The opportunity is open if the government strengthens data on production, supply, demand and commodity transactions in the country.
Jakarta Futures Exchange (JFX) President Director Yazid Kanca Surya said commodity prices can become a reference when market participants begin to trust and use prices formed in Indonesia.
“If everything is done properly, within a few months we can become a price reference,” Kanca said at the JFX Media Gathering 2026 in Jakarta on Wednesday (26/8/2026).
According to Kanca, Indonesia has strong capital because it is a major producer of a number of commodities. However, that production capacity needs to be supported by complete and accurate data so that domestic market conditions can become a reference for global market participants.
The data needed covers production, productivity, land area, plant age, and commodity trade. Such data is required to provide a more complete picture of supply and demand conditions.
“If we do not know how much supply we have, we can only see demand. The price cannot be determined properly,” he said.
Kanca cited palm oil as an example. Indonesia is one of the world’s largest palm oil producers, but foreign market participants still use data from other countries as one of their references.
According to him, the government needs to have a commodity data centre covering production and trade. The availability of such data will help the market see the supply, demand and price conditions formed in Indonesia.
Experience in tin trading at JFX shows that reference prices from Indonesia have begun to attract the attention of international buyers. Market participants no longer look only at prices from overseas exchanges, but also at prices formed at JFX.
“If people from other countries have started using that price, it will become a benchmark,” Kanca said.
He believes that pattern can be applied to other commodities, including palm oil. With a large production base and a strengthened domestic market, Indonesia has the opportunity not only to be a commodity producer, but also to become a place where price references are formed.
“If within a few months we can already provide prices to the world, that is good. The important thing is that all market participants must support the initiatives undertaken by the government,” Kanca said.