The Ministry of Trade, through the Commodity Futures Trading Regulatory Agency (Bappebti), is committed to enhancing multilateral transactions in commodity futures trading as part of a broader transformation strategy. This initiative is designed to strengthen Indonesia's strategic commodities and adapt to the evolving industry landscape. During the dialogue titled "Transformation of Commodity Futures Trading in the Digital Era," held in Bandung, West Java, on 5 August 2024, Bappebti’s Acting Head, Kasan, emphasized the importance of strategies that maximize commodity-based multilateral contracts. These strategies include introducing new products, expanding membership, and reinforcing regulations. Kasan highlighted the need for public trust in the commodity futures industry, along with efforts to establish price references for crude palm oil (CPO) and tin through dedicated exchanges. Currently, the industry is dominated by bilateral transactions, but Bappebti aims to shift focus towards multilateral transactions to better leverage Indonesia's position as a leading global producer of commodities such as CPO, rubber, copra, nickel, coal, and fishery products.
In 2023, the total notional value (NV) of commodity futures trading reached IDR 25.68 trillion, with multilateral transactions accounting for only IDR 407 billion. To enhance multilateral trading, it is crucial to carefully select commodities and strengthen related regulations to ensure compliance with legal standards. Industry leaders, including Stephanus Paulus Lumintang, CEO of the Futures Exchange, and Fajar Wibhiyadi, Director of the Indonesian Commodity and Derivatives Exchange (BKDI), underscored the importance of expanding the range of commodities traded and increasing market participation to boost liquidity and transparency. Collaborative efforts between Self-Regulatory Organizations (SROs) and stakeholders are essential to drive the development of multilateral contracts. Additionally, enhancing public literacy and understanding of commodity futures trading is vital for supporting this transformation.
