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)