BBJ delays launch of coal futures contract

The Jakarta Futures Exchange (BBJ) has delayed its plan to launch coal futures contract in the first quarter of this year as the exchange needs more time to discuss the trade with both potential buyers and sellers, Kontan reported on Wednesday.

The exchange?s director Bihar Sakti Wibowo said in Jakarta on Tuesday that the launch of the coal futures contract was delayed because the exchange was still negotiating the technical aspects of the trade with related organizations.

?We will soon hold a meeting with the association of the Indonesian coal producers in order to get first information about their position,? he said.

Bihar said he hoped all the stake holders would be able to soon achieve an agreement so that the coal futures contract could be launched in the second quarter of this year.

The exchange earlier said that the coal futures contract would be launched in the first quarter of this year to create a benchmark price for the sales of coal in the domestic market. The trade will cover both coal futures contract and physical market. (*)