Home›Global Markets›Trade & Tariffs›Indonesia plans new commodity exchange for palm oil, n…

Indonesia plans new commodity exchange for palm oil, nickel, coal

The Strategic Mineral and Commodity Exchange, BMKS, is targeted to start on Jan. 1 and will be supervised by Indonesia’s Financial Services Authority.

Reported · Written up by our desk · Trade & Tariffs

Indonesia President Prabowo Subianto has announced plans for a new trade exchange to help set benchmarks for commodities including palm oil, nickel, and coal, with operations targeted to begin on January 1, according to SCMP Economy.

The Strategic Mineral and Commodity Exchange, BMKS, is designed to oversee export volumes, prices, and taxes across those commodities as part of a broader push for greater state oversight of export revenue.

SCMP Economy reports that analysts say Indonesia’s dominance in physical palm oil supply may not be enough to shift international traders away from Bursa Malaysia’s crude palm oil futures contract (FCPO), which the industry uses for pricing and hedging.

BMKS will be supervised by Indonesia’s Financial Services Authority, which said it appointed Henry Rialdi as deputy commissioner responsible for regulating and overseeing the exchange, SCMP Economy added.

Latest closeWTI crude $82.40 ▲1.4%

More like this

Sources