| 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. | |