Sarjito says Mineral Exchange CEO will be appointed by OJK
Jakarta (ANTARA) - Candidate for Chief Executive of the Mineral and Strategic Commodities Exchange (BMKS) Sarjito has said that the appointment of the President Director or Chief Executive Officer (CEO) of BMKS will be the authority of the Financial Services Authority (OJK) as the supervising authority.
“Yes, (the one who chooses) is OJK. We are the ones who supervise,” Sarjito told reporters after undergoing a fit and proper test at Commission XI of the Indonesian House of Representatives (DPR RI), Jakarta, Monday.
Sarjito assured that all aspects of BMKS operations will run in accordance with regulations, from exchange participants, traded products, trade surveillance systems, to clearing mechanisms.
“Everything must be okay. The people handling its operations must be okay, the quality assessors must be okay, the surveillance must be okay, then the products must be okay,” said Sarjito.
He cited as an example that mineral products traded must have clear quality and specifications, because this is important for building market participants’ trust in BMKS.
He stressed that building a credible and liquid market is one of the important matters in the early stages of BMKS operations.
He explained that one indicator of a market that has been trusted by business actors is the emergence of price arbitrage activity, namely when market participants buy a product in a market offering a lower price and sell it in another market with a higher price.
“Arbitrage will always exist. That means there is trust,” said Sarjito.
Sarjito continued that market participants will move to an exchange if they obtain better trading conditions, including fair prices, adequate liquidity, and a high level of trust.
“That is why I said trusted market first. A deep market, a liquid one, so that people are willing to move,” said Sarjito.
He expressed hope that BMKS can become a credible market, so that it is able to form prices for minerals and strategic commodities that are trusted by market participants.
“If there is something better, they will definitely move. For anything at all. So how do we build that,” said Sarjito.
Regarding the existence of a commodity exchange already operating in Indonesia, namely the Indonesia Commodity and Derivatives Exchange (ICDX), Sarjito said the transition mechanism and the presence of existing market participants still need to be evaluated.
He explained that the establishment of BMKS will be a new form, while existing experience and participants can serve as evaluation material to ensure a smooth transition.
“The transition must be smooth. And what has already happened elsewhere should be carried over. But with improvements in accordance with the people here,” said Sarjito.
On this occasion, Sarjito affirmed that he will be firm against illegal broker practices, as well as promotions of commodity products that have the potential to mislead the public.
“So I will be very strict if there is education to the public, promotion to the public, but it is a trap,” said Sarjito.
He stated that details regarding the types of minerals and strategic commodities to be traded on BMKS are still awaiting government regulation, including a Presidential Regulation (Perpres).
“This is waiting for the Perpres. Waiting for the President (Prabowo Subianto), if we use legal language,” said Sarjito.
Previously, the government targeted BMKS to begin operating on 1 January 2027, which Sarjito said is mandatory, so all preparations need to be carried out in an integrated manner.
“Operating on 1 January 2027. That means it is mandatory,” said Sarjito.