T

he Indonesia Commodity & Derivatives Exchange (ICDX) has gained approval to begin futures and commodity trading in September at the latest, accommodating the trading of palm oil and gold futures at first, with other commodities to follow in successive years.

ICDX president director Megain Wijaya said on Tuesday said that the long-term target of the bourse would be to make Indonesia a price reference for world primary commodities such as palm oil and cocoa.

"Next year, ICDX will try to facilitate the trading of coal, tin, and cocoa," said Megain, adding that ICDX's trading fee would be about Rp 10,000 for each 25 tons of crude palm oil or each 1 kilogram for gold.

At present, the country is the world's largest producer of palm oil, top exporter of tin, third-largest producer of cocoa and fifth-largest for coffee.

The ICDX will be Indonesia's second futures exchange, after the Jakarta Futures Exchange (JFX) covering physical trading of palm oil, came into operation last month.

"We're a producing-country so it's time for us to have a reliable commodity market," said Deddy Saleh, head of the Trade Ministry's Commodity Futures Exchange Supervisory Board (Bappebti), which regulates futures trading

"I believe ICDX can make futures trading more dynamic and establish reference prices acknowledged by national and international traders," said Deddy.

The ICDX is trying to recruit more members before beginning trading, at the latest in October.

It now has 11 company members, consisting of six gold trading companies, two IT companies, one electronic service company, one fiberglass trading firm, and one palm oil firm, according to Bappebti's data.

Megain said ICDX was trying to recruit as members big palm oil companies, such as PT Astra Agro Lestari, PT Sinar Mas Agro and Technology, PT London Sumatra Indonesia, and PT Wilmar International Plantation.

"Currently, the most important thing is to gather as many sellers and buyers in ICDX as possible. If it has many members with lots of trading activities, the commodity market will be more liquid and earn more trust from market stakeholders," said Megain.