Seven brokers get permits to operate

Seven brokers get permits to operate

JAKARTA (JP): The Commodities Futures Exchange Supervisory
Board (Bappebti) issued permits on Monday allowing seven
brokerage companies to operate in the Jakarta Futures Exchange
(JFX).

"The licenses were issued following a thorough assessment of
their professional and financial credibility," Bappebti chief
Arifin Lumban Gaol was quoted by Antara as saying.

The seven brokerage companies are PT Fikasa Internasional
Futures, PT Asia Kapitalindo Berjangka, PT Indofutop, PT
Danagraha Futures, PT Rifan Financindo Berjangka, PT Sentratama
Investor Berjangka and PT Dana Reksa Futures, he said.

Issuance of the brokerage licenses ended the latest hurdle
raising uncertainty about the JFX's ability to commence trading
on Dec. 15. The JFX initially planned to commence its service in
September, however Bappebti refused to grant it a permit as the
exchange still had to overcome some technical problems.

The exchange finally received the permit last week, deciding
to begin trading on Dec. 15 following months of delays.

At least 29 other brokerage companies are currently in the
process of licensing, Arifin said, hoping that more than 12
companies would be issued with licenses prior to the exchange
commencing operations.

According to the governmental decree on futures commodity
trading, the only brokerage companies allowed to operate are
those who receive operating licenses from Bappebti.

Bappebti requires all futures broker companies to deposit at
least Rp 1.25 billion ($131,579) as capital.

Bappebti said on Monday that it has also issued certificates
of registration to three commodity traders, including PT Menacom,
PT Perkebunan Nusantara III and PT Asia Nusa Prima.

JFX was founded in August 1999 by four palm oil plantations,
seven palm oil refineries, eight securities companies and two
general trading companies.

JFX has an authorized capital of Rp 40 billion (US$4.25
million) and paid-up capital of Rp 11.6 billion. It received the
government's approval to trade olein, a derivative commodity of
crude palm-oil, and Robusta coffee.

Next year the exchange plans to expand into other agribusiness
commodities such as plywood, as well as taking on mining and
finance commodities such as gold, currency, the stock index, and
interest rates. (tnt)