Tue, 30 May 2000

Jakarta Futures Exchange faces delay

JAKARTA (JP): The inauguration of the Jakarta Futures Exchange (JFX), Indonesia's first commodities futures trading center, has been delayed once more from its opening date of July 1

JFX president Hasan Zein Mahmud said on Monday there were still some critical elements that had not been completed, and that a team was in the process of identifying them.

The team comprises of the Indonesian Commodities Exchange Supervisory Agency (Bappebti) as regulator and supervisor, members of JFX, and state-owned PT Kliring dan Jaminan Bursa Komoditi as the clearing house, he said after opening a commodity futures trading training session for professionals at the Export Training Center in West Jakarta.

Uncompleted matters include members' readiness, software and hardware installation, which is to be finished this week, systems tests, which will be run in early June, the establishment of a supporting interface and quality certification, said the former president of the Jakarta Stock Exchange.

JFX, established in August, was initially scheduled to begin trading in March. It was then postponed until July.

Another JFX executive said recently that trading would open in September, not July, due to a delay in the installation of the computerization system.

"It is almost certain that it will be postponed again, but I don't know until when," Hasan said, adding that an announcement was expected later in the week.

"The new deadline should be more realistic because it now involves all related organizations," he added.

"There is so much work to be done, we thought we could finish (on time) but we couldn't," he said.

Founded with an authorized capital of Rp 40 billion and a paid-up capital of Rp 11.6 billion, JFX has received government approval to trade olein, a derivative of crude palm oil (CPO), and coffee.

Its founders comprise of four oil palm plantation companies, seven palm oil refinery companies, eight securities companies and two general trading companies.

JFX's listed brokers, among others, are PT Batavia Futures, PT Artha Berjangka, PT Dana Graha Futures, and PT Gading International Berjangka. (10)