JFX to launch coal contract next month

After lengthy preparation process of up to three years, the Jakarta Futures Exchange (JFX) is finally set to launch a coal futures contract in May, Bisnis Indonesia reported Wednesday.

The paper quoted JFX Director Bihar Sakti Wibowo as saying that the commodity futures trading regulator, Bappepti, has issued the necessary permit. ?All are nearly ready, it will certainly be launched in May, we?re now just deciding on the date,? he said.

The JFX is currently trying to promote the new contract and woo more members to participate in the transaction of the physical coal contract. So far, one company (PT Bukit Asam Tbk) has been registered as seller, and 13 as buyers, the paper said.

Bihar said that the JFX has set a target for transaction volume to reach about 20 percent of the seller?s production. This means that if Bukit Asam?s coal production this year is estimated at 50 million tons, coal physical transaction conducted via the bourse could reach 10 million tons. (*)