JFX: Strengthening Price Discovery Reinforces Domestic Commodity Benchmarks

Jakarta (ANTARA) - PT Bursa Berjangka Jakarta (Jakarta Futures Exchange/JFX) considers the strengthening of the price discovery mechanism important for building more credible domestic commodity reference prices whilst reinforcing Indonesia’s position in the global market.

JFX President Director Yazid Kanca Surya stated that a strong reference price is not formed through unilateral stipulation, but rather from transactions that take place openly, are liquid, and continuous, thus reflecting actual market conditions.

“Reference prices are built through the price discovery process. When transactions take place openly, involve many market participants, and are conducted continuously, the price formed will increasingly reflect genuine market conditions. It is from this process that a credible reference price is born,” Yazid said in Jakarta on Tuesday.

According to him, strengthening the price discovery mechanism is increasingly relevant because Indonesia is a major producer of various strategic global commodities, including palm oil, yet businesses still widely use reference prices from international exchanges.

“The more active the transactions, the more market information is reflected in the price. For businesses, prices formed through this process not only serve as a reference for conducting transactions but also as a basis for managing risk when the market moves very dynamically,” he said.

As an illustration, olein trading on the JFX from 28 June to 25 July 2026 recorded a transaction volume of 67,564 lots with a value of approximately Rp6.85 trillion. In the last week of July 2026, the global olein reference price based on the Bursa Malaysia Derivatives (BMD) FPOL increased by 3.52 percent to 1,175 US dollars, or around Rp21.17 million per ton, from 1,135 US dollars, or around Rp20.45 million per ton, the previous week.