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Indonesia has announced plans to launch an exchange for 'mineral and strategic commodities' on January 1, 2027, which is expected to include key products such as palm oil, nickel, and coal. The initiative aims to establish Indonesia's own reference prices for many of its primary commodities, leveraging the nation's vast natural resources to boost economic growth.
President Prabowo Subianto unveiled the plan during his 2027 budget proposal speech on August 14. This latest push underscores his administration's strategy to capitalize on the country's extensive natural resource reserves to drive economic expansion.
As Southeast Asia's largest economy, Indonesia is the world's leading exporter of palm oil, thermal coal, and nickel products. It also stands as a significant global supplier of coffee beans, bauxite, tin, and copper, among other crucial commodities.
Presidential spokesperson Prasetyo Hadi informed reporters on Monday, on the sidelines of Indonesia's Independence Day celebrations, that the government is currently 'ironing out the details' of the plan's implementation, including the specific types of commodities to be traded on the exchange. He stated, 'Certainly it will cover the commodities that are our primary products, such as CPO (crude palm oil), nickel, and coal.'
Friderica Widyasari Dewi, chief of the Financial Services Authority (OJK), told reporters that the OJK will introduce the rules governing the new bourse by September 17. She further noted on August 14 that these rules would outline the phased transition of trades into the new exchange, with a separate presidential decree to be issued to list the commodities designated for trading.
Source: The Business Times