By Dominikus
Indonesia is advancing plans to launch a national metal futures exchange by 2026, aiming to strengthen its role in global nickel price formation, industry leaders said at the Indonesia Critical Minerals Conference last week.
The initiative is led by the Indonesian Nickel Mining Association (APNI) and supported by the government. APNI Secretary General Meidy Katrin Lengkey said the exchange will initially offer nickel pig iron contracts and later expand to other metal products. “We hope to obtain the exchange license by the end of this year,” she said.
Indonesia, the world’s top nickel producer, has long sought greater influence over global pricing. The fall in nickel prices to a four-year low in late 2024 has added urgency to those efforts.
Edric Koh, Head of Corporate Client Development for APAC at the London Metal Exchange (LME), said the LME supports regional initiatives. “Regional exchanges do not have to compete with global benchmarks. They can complement each other,” he said, citing Indonesia’s 12 metal brands already listed on the LME.
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Koh also noted efforts to improve transparency through daily off-warrant stock reports and mandatory ESG compliance for all LME-listed brands. “More than 97 percent of brands have voluntarily submitted ESG disclosures via LMEpassport,” he said.
Daniel McElduff, President of Abaxx Exchange, warned that creating a new exchange requires clear commercial relevance. “If a product doesn’t serve a defined market need, it will struggle to attract participants, no matter how strong the backing,” he said.
Adam Fan, President of SMM Information & Technology Co., Ltd., said exchanges are shifting toward cash-settled and index-based contracts. “Physical delivery plays a smaller role in new contract designs. The key is balancing price linkage and liquidity,” he said.
Yazid Kanca Surya, Director at the Jakarta Futures Exchange, said the licensing process is ongoing and will be followed by alignment with Indonesia’s downstream policies.
Tiger Shi, CEO of BANDS Financial, added that Indonesia’s large population and growing industrial base support the case for a national exchange. “It’s not about competing. It’s about serving the real economy and improving price transparency,” he said.
Industry participants agreed that while Indonesia’s exchange plan is ambitious, its success will depend on broad participation, clear market demand, and long-term credibility.
Editing by Reiner Simanjuntak
