Indonesia Prepares Strategic Mineral Exchange, OJK Chase Derivative Rules

RAPBN 2027 (Aris Nurjani/VOI)

JAKARTA - The government is speeding up preparations for the establishment of the Strategic Mineral and Commodity Exchange (BMKS) which is targeted to start operating on January 1, 2027.

The presence of this exchange is expected to make Indonesia have its own reference prices for strategic minerals and commodities, so that it is no longer entirely dependent on prices formed in foreign markets.

Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Friderica Widyasari Dewi said that OJK is completing various derivative rules that are needed so that BMKS can operate according to the target.

The establishment of the exchange is a mandate of Law Number 4 of 2026 concerning Amendments to Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK).

The woman, who is familiarly called Kiki, said that her party was completing the provisions related to the stages of trade transition and the implementation of BMKS.

"The President has conveyed this in his speech, where the Strategic Mineral and Commodity Exchange will start operating on January 1, 2027. For this reason, OJK is currently in the process of completing the derivative provisions of the P2SK Law, including provisions for the stages of trade transition and provisions for the operation of the Strategic Mineral and Commodity Exchange," he said at a press conference on the 2027 Budget and Financial Notes, quoted Sunday, August 16.

OJK is preparing two OJK Regulations (POJK) to support the establishment of BMKS, namely the first POJK will regulate the stages of the transition of trade in strategic minerals and commodities to BMKS.

Meanwhile, the second POJK regulates institutional preparations, including organizational structure, human resources, and budget for exchange organizers.

Kiki explained that OJK is required to issue OJK Regulation (POJK) related to BMKS no later than September 17, 2026 and the draft regulation must also undergo consultation and obtain the approval of the Indonesian House of Representatives.

According to Kiki, the existence of BMKS is expected to deepen the domestic market as well as become a means of price formation or price discovery for Indonesia's strategic minerals and commodities.

He explained that so far, although Indonesia is one of the largest producers of strategic minerals and commodities in the world, the formation of commodity reference prices has not taken place in the country.

"I feel that this is something with a very noble goal that Indonesia is a producer of strategic commodities and also very large minerals, yes, some of which are number one in the world. However, so far there is no price discovery or reference price in the country," he said.

Kiki added that the formation of domestic reference prices is also expected to increase the transparency of commodity trade while suppressing practices such as transfer pricing and under-invoicing.

"This BMKS Exchange and of course this can be a reference price to reduce the so-called or eliminate the so-called transfer pricing, yes, under-invoicing and others, and of course all of this is to improve the welfare of the Indonesian people," he said.

Kiki said the list of minerals that will be traded through the BMKS has basically been determined. However, it is still waiting for the issuance of a Presidential Regulation (Perpres) as the basis for regulation.

He added that the preparation of the BMKS was also carried out intensively by involving the OJK, the Mineral Industry Agency (BIM), and Danantara.

"So actually there are minerals that have been determined to be included, there are only good ones because there are in the Presidential Decree. Later we will wait for the Presidential Decree," he said.

In addition to determining commodities, Kiki said OJK has also prepared various supporting elements of the exchange ecosystem, namely prospective exchange organizers and clearing institutions that will carry out functions similar to PT Kliring Penjaminan Efek Indonesia (KPEI) in the capital market.

"Well, then, who will be the bursary, who will be the clearing institution like KPEI (Kliring Penjaminan Efek Indonesia), that's it, we have also prepared everything," he said.

He added that the preparation of the BMKS also includes a warehousing system and a mechanism for checking the quality of commodities so that the system will later allow the existence and movement of commodities to be monitored more transparently.

Kiki said that the BMKS system simulation had also been carried out, including to ensure that the condition of goods and warehouses could be monitored through the system.

"It will be like a warehousing system, then check the quality, then there are goods that are true or not, all of that will be prepared by the structure that we prepare," he explained.

Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto said the establishment of BMKS is part of the government's strategy in encouraging economic growth engines based on transformation in 2027.

He explained that the strategy includes reforms in high-value sectors such as digitization, semiconductor production, and artificial intelligence (AI) and the next strategy is to strengthen sectors that have resilience, including agriculture and energy.

Regarding the strategy, the government will also encourage the establishment of a strategic mineral and commodity exchange. "Including the establishment of a mineral commodity exchange. Indonesia has its own price as a reference price," he said.

In addition, the government will increase the competitiveness of investment and exports through deregulation, optimization of international agreements, and the establishment of international financial centers.