MEMR says further discussions needed on proposed Indonesia mineral exchange

By Calvin Purba

The Ministry of Energy and Mineral Resources (MEMR) said it still needs to conduct further discussions regarding the proposed establishment of a domestic mineral exchange, a plan that was floated by Finance Minister Purbaya Yudhi Sadewa last week.

Energy and Mineral Resources Minister Bahlil Lahadalia said the ministry has not yet moved toward the formation of a mineral exchange and is still evaluating the concept.

"We have not conducted detailed discussions yet. Regarding the mineral exchange, we are still looking for the right formula. I don't think we are heading in that direction yet, but we will discuss it further," Bahlil said on Monday.

Earlier, Indonesia announced plans to establish a domestic mineral exchange to support price discovery for the country's vast mineral resources and reduce reliance on overseas trading platforms.

The proposed exchange would be supervised by the Financial Services Authority (OJK) following revisions to the Law on Financial Sector Development and Strengthening (P2SK), which expand the regulator's responsibilities.

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Purbaya said the mineral exchange would be separate from state-owned mineral export company PT Danantara Sumberdaya Indonesia (DSI) and is intended to provide a domestic marketplace for commodities that are currently traded through exchanges abroad.

"There will be a mineral market and a mineral exchange. OJK will supervise it," Purbaya told reporters at the parliament complex in Jakarta. "Many of our mineral products are traded through exchanges in Singapore and other countries, even though Indonesia is a major producer."

Purbaya did not provide a timeline for the launch of the exchange but indicated the government intends to move quickly.

The House of Representatives approved amendments to the P2SK Law on Thursday, paving the way for OJK's expanded role. The legislation also strengthens the regulator's authority over capital markets, financial derivatives, carbon trading, and strategic commodity exchanges.

Deputy Chairman of House Commission XI Mohammad Hekal said the amendments include provisions granting OJK authority to regulate and supervise mineral and strategic commodity exchanges, alongside other financial market activities.

Editing by Reiner Simanjuntak