Foreword

The benefit of establishing a local exchange through which Indonesian business entities can hedge their risks has been confirmed by various studies commissioned by the Indonesian government. Recognizing that the benefits far outweigh the possible cost, the Indonesian government submitted a bill for approval by Parliament in 1996. It was signed into law on December 5, 1997 as Act No. 32/1997 (Commodity Futures Trading Act).

is the first exchange established under this law. was established on August 19, 1999 by 4 palm plantations, 7 refineries, 8 coffee exporter, 8 securities companies and 2 general traders. Of the 40 billion capital authorized, capital paid-up was Rp. 11.6 billion. Bursa Berjangka Jakarta fulfills all the requirements as stated by the Act. It is expected that Bursa Berjangka Jakarta was licensed to operate in the second semester of 2000.

Although it is possible that there can be other Futures Exchanges under the Act, in line with the international trend of merging exchanges, it is improbable that there will be another exchange allowed, JFX can thus be seen as the only Futures Exchange in Indonesia.

The Exchange is designed as a multi-commodity Futures Exchange. The first two contracts: Olein Futures Contract and Robusta Futures Contract will be followed in due time by Cocoa Futures, Pepper Futures, Rubber Futures, and Plywood Futures. Options on Futures and Financial Futures will be considered later.