JFX set to start coal contract June 25

After one month of delay, the Jakarta Futures Exhange (JFX) is finally set to start trading of the country?s first coal futures contract on June 25 as preparations have been completed, Kontan reported on Thursday.

President Director of JFX, Bihar Sakti Wibowo, said that the exchange had made an agreement with IDX-listed coal giant PT Bukit Asam Tbk (PTBA), which is so far the only coal mining member of the exchange, to use its coal ports in Lampung and Palembang as the exit gate of coal destined for the export market. As the number of members will increase, the JFX will make similar arrangement with other ports.

Currently, 14 coal traders have been registered with the exchange including PTBA which acts as both producer and seller, and 13 others which are pure coal buyers, most of which are foreign firms based in China and Japan.

Bihar said that the exchange aims to expand the number of members including 10 additional coal producers and 20 buyers before the end of this year. The exchange has set a transaction volume target of 10 million tons.

The coal futures contract is expected to allow Indonesia, the world?s largest thermal coal exporter, to have more influential role in the pricing of the commodity. (*)