INDONESIAN COMMODITY EXCHANGE MAY EXPAND
The Indonesian Commodity Exchange is
likely to start trading in at least one new commodity, and
possibly two, during calendar 1987, exchange chairman Paian
Nainggolan said.
    He told Reuters in a telephone interview that trading in
palm oil, sawn timber, pepper or tobacco was being considered.
    Trading in either crude palm oil (CPO) or refined palm oil
may also be introduced. But he said the question was still
being considered by Trade Minister Rachmat Saleh and no
decision on when to go ahead had been made.
    The fledgling exchange currently trades coffee and rubber
physicals on an open outcry system four days a week.
    "Several factors make us move cautiously," Nainggolan said.
"We want to move slowly and safely so that we do not make a
mistake and undermine confidence in the exchange."
    Physical rubber trading was launched in 1985, with coffee
added in January 1986. Rubber contracts are traded FOB, up to
five months forward. Robusta coffee grades four and five are
traded for prompt delivery and up to five months forward,
exchange officials said.
    The trade ministry and exchange board are considering the
introduction of futures trading later for rubber, but one
official said a feasibility study was needed first. No
decisions are likely until after Indonesia's elections on April
23, traders said.
    Trade Minister Saleh said on Monday that Indonesia, as the
world's second largest producer of natural rubber, should
expand its rubber marketing effort and he hoped development of
the exchange would help this.
    Nainggolan said that the exchange was trying to boost
overseas interest by building up contacts with end-users.
    He said teams had already been to South Korea and Taiwan to
encourage direct use of the exchange, while a delegation would
also visit Europe, Mexico and some Latin American states to
encourage participation.
    Officials say the infant exchange has made a good start
although trading in coffee has been disappointing.
    Transactions in rubber between the start of trading in
April 1985 and December 1986 totalled 9,595 tonnes, worth 6.9
mln dlrs FOB, plus 184.3 mln rupiah for rubber delivered
locally, the latest exchange report said.
     Trading in coffee in calendar 1986 amounted to only 1,905
tonnes in 381 lots, valued at 6.87 billion rupiah.
     Total membership of the exchange is now nine brokers and
44 traders.
 REUTER
