Indonesia Futures Exchange to Launch 3 Commodity Contracts

Jakarta — The Jakarta Futures Exchange (JFX) will launch coal, natural rubber and coffee bean contracts in the first quarter of next year, an exchange director said on Thursday, with the aim of tapping into a surge in interest from new commodity investors.

One year ago, the JFX said it would launch a coal and coffee futures, but strict government rules blocked the plans.

“We plan to launch three commodity future contracts — coal, natural rubber and coffee — in the first quarter of next year,” JFX Director Bihar Sakti Wibowo said.

The exchange launched a coffee contract in 2000, but withdrew it later for lack of liquidity.

Last year, the JFX launched sharia-compliant commodity contracts for five agricultural products, including coffee, cocoa and raw cashew nuts.

Commodity contracts traded on the JFX this year, at 198,752 lots, were 2.5 times last year’s figure, Wibowo said, adding that the exchange’s cocoa contract was the top performer.

Indonesia, a major cocoa and coffee producer and the world’s top exporter of refined tin and thermal coal, has for years tried to gain a greater say on prices of its commodities.

In the past, the absence of regular data from Indonesia, has made it tough for new commodity contracts to rival contracts issued by foreign exchanges.

A physical tin contract launched this year by the Indonesia Commodity and Derivative Exchange, struggled to attract enough liquidity to challenge the London benchmark contract.[]


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