Indonesia Prepares Mineral Exchange, Experts Offer Unexpected Response
The Indonesian Mining Experts Association (PERHAPI) views the government and Parliament’s plan to establish a Strategic Mineral Commodity Trading Exchange in Indonesia as a commendable step. The General Chairman of PERHAPI, Sudirman Widhy, noted that although Indonesia is one of the world’s largest producers of strategic minerals, transactions currently rely on overseas exchanges such as the London Metal Exchange (LME), Singapore, and Shanghai.
Key commodities potentially traded through the Indonesian Mineral Exchange include nickel, tin, copper, bauxite, and gold. As the world’s largest nickel producer, this commodity is a top priority. Additionally, Indonesia’s role as a major tin exporter and the growth of the downstream mineral industry—particularly for battery and electric vehicle production—makes copper and bauxite highly prospective. Gold also remains a strategic commodity with significant potential for domestic trading.
Widhy stated that the establishment of a domestic mineral exchange is expected to allow Indonesia to become a ‘price setter’ rather than merely a ‘price taker’. However, he warned of four potential hurdles: first, the increased compliance costs for corporations which could impact profit margins; second, technical and operational disruptions during the transition period leading up to 1 January 2027; third, the risk of low liquidity which could lead global players to continue using international benchmarks; and fourth, the difficulty of building global trader confidence without error-free technology, fair legal systems, and high transparency.
Previously, the Chairman of Commission XI of the Indonesian Parliament, Mukhamad Misbakhun, stated that the formation of this exchange is mandated by the revision of the Law on the Development and Strengthening of the Financial Sector (P2SK). The exchange is targeted to begin operations on 1 January 2027. Misbakhun clarified that the regulatory framework for this exchange will be separate from the Commodity Futures Trading Regulatory Agency (Bappebti).
He emphasised that Indonesia aims to develop the best possible concept for a commodity exchange by studying international models to ensure credibility. Furthermore, he clarified that the mineral exchange will be a distinct entity from PT Danantara Sumber Daya Indonesia (DSI). Finance Minister Purbaya Yudhi Sadewa also confirmed that the government intends to establish the Mineral Exchange as soon as possible this year.