JFX develops tin price index and futures contract to boost transparency
Wednesday, November 12 2025 - 08:03 AM WIB
By Adianto P. Simamora
The Jakarta Futures Exchange (JFX) is developing a transparent tin price index and futures contract to enhance price discovery and provide new hedging instruments for market participants.
The initiative is part of Indonesia’s broader effort to strengthen governance and efficiency in the tin sector, in line with government policies promoting transparent, traceable, and fair trading mechanisms.
JFX President Director Kanca Surya said the exchange is working closely with the Commodity Futures Trading Regulatory Agency (Bappebti), the Financial Services Authority (OJK), and Bank Indonesia to build a more integrated trading ecosystem that reflects market fundamentals and supports the country’s downstream industrialization goals.
“After the shift, all Indonesian tin is required to go through the exchange. This ensures transparency and fair trading, resulting in more competitive pricing and reliable, verifiable data on local sales. Ultimately, the JFX price serves as a benchmark,” Kanca said at the Indonesia Metal Outlook Conference, co-organized by Petromindo and CoalMetalAsia.
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According to JFX, the transition to exchange-based trading has reshaped the tin market landscape. Previously, sales were dominated by long-term contracts and direct negotiations that often lacked transparency and regulatory oversight.
Under the new framework, all domestic and export transactions must pass through the exchange and be cleared by PT Kliring Berjangka Indonesia, improving traceability and accountability.
Kanca said the JFX tin platform currently connects 24 international buyers, 10 domestic buyers, and 38 registered sellers, enhancing liquidity and standardizing price discovery. Trading volumes peaked at about 60,000 tons in 2020 before the introduction of stricter traceability systems, such as Inatrace, in 2021.
By 2024, the government and Bappebti had begun encouraging domestic tin trading through the exchange—marking a key step toward positioning Indonesia as a recognized reference for global tin prices. JFX ultimately aims to replace the Kuala Lumpur Tin Market (KLTM) as the regional benchmark.
“Our focus now is to complete four key initiatives—building a transparent and reliable trading platform, partnering with regional index providers, ensuring accurate data dissemination, and achieving full integration across Indonesia’s tin industry,” Kanca said.
Editing by Reiner Simanjuntak