Indonesia plans commodity exchange rules by end of November

what happened

Indonesia's Financial Services Authority intends to publish two of four drafted rules before November ends, Reuters reported, citing a senior official. The rules cover the bourse's organisation, its management and the products it will trade. The new exchange is due to begin trading on January 4.

The exchange aims to raise transparency and tighten oversight of exports of coal, nickel and palm oil, commodities where Indonesia is the largest global exporter. Henry Rialdi, deputy commissioner at the regulator, said he was hopeful the schedule would hold. Officials are also discussing with the government and sovereign fund Danantara who will run the exchange.

why it matters

For coal, nickel and palm oil markets, tighter state visibility over exports could shape trade flows once the exchange opens. The rules are still being drafted, so the practical effects will become clearer once they are published.

market impact

Coal, nickel, palm oil: stricter export oversight may shape trade flows once the exchange opens

tags

instruments