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Jakarta Post

Indonesia introduces monitoring system for futures market

  • Stefani Ribka

    The Jakarta Post

Jakarta   /   Tue, October 31, 2017   /   07:12 pm
Indonesia introduces monitoring system for futures market Trade Ministry’s Futures Exchange Supervisory Board (Bappebti) head Bachrul Chairi (Courtesy of/kemendag.go.id)

The Trade Ministry's Futures Exchange Supervisory Board (Bappebti) introduced a new system to monitor the futures commodity market to fight rampant illegal trading.

The system, called the single-monitoring system of alternative trading systems (SPTT-SPA), aims to monitor the futures market in a real-time basis and prevent market and financial fraud.

“In SPA [futures] transactions, the trading database of each [trading] server is taken periodically every day, unlike in the past, where the database had been recorded one week after transactions. So we can now monitor it more accurately,” said Bappebti head Bachrul Chairi in Jakarta on Tuesday.

Around 60 percent of today’s futures transactions are illegal, contributing to the expected stagnation in the commodities market this year.

Read also: Indonesia reforms industrial sugar trading, kicks off auction system

As of October, the total spot and futures market is recorded at around Rp 55.5 trillion (US$4.1 billion), a decrease of 3.04 percent year-on-year (yoy) due to rampant illegal trading, among other factors. The value is dominated by the futures market.

Bappebti expects the total market value to reach Rp 98 trillion by the year's end, a similar level to last year.

The system was soft-launched on Monday and is scheduled for its grand launch in January. (bbn)