Indonesia to launch mineral and commodity exchange in 2027

Indonesia plans to establish its own mineral and strategic commodities exchange by Jan. 1, 2027, as the country seeks to develop its own reference prices for major commodity exports, President Prabowo Subianto said Aug. 14.

Prabowo said he has asked the parliament to approve the rules governing the proposed exchange, which will operate under the supervision of the Financial Services Authority. The government aims to issue implementing regulations by Sept. 17, Prabowo added.

"With the support of parliament, we plan that on Jan. 1, 2027, we will have our own commodity exchange," Prabowo said in a speech at the annual session of Indonesia's People's Consultative Assembly ahead of the country's Aug. 17 Independence Day.

Prabowo said the government plans to establish an Indonesian reference price for the country's main commodity exports to boost market transparency.

The system would bring producers, farmers, exporters, buyers and investors together in a supervised system, with clearer transaction data and less room for manipulation, Prabowo said.

The proposed minerals and commodity exchange comes after Indonesia established state-owned PT Danantara Sumberdaya Indonesia (DSI) to strengthen governance of the country's commodity exports.

"We will no longer be a place where commodities are dug up, while the prices and profits are determined by other countries," Prabowo said.

"We do not only want to be a producer of the world's commodities, but also a price setter. We want Indonesia to become a place where commodities are traded," Prabowo added.

If buyers are unwilling to pay prices set by Indonesia, the nation should be prepared to keep commodities such as nickel, tin, gold, coal, gas and oil in the ground, Prabowo said.

"If they do not want to pay the price we set, then don't buy," Prabowo said, while noting that he understood market mechanisms that could deter buyers from excessively high prices.

Platts, part of S&P Global Energy, assessed Indonesian nickel pig iron with 10% nickel content at $145.40/metric ton FOB Indonesia on Aug. 14, dropping $1.30/mt day over day and down 60 cents/mt from the previous week.