Reuters reported that the government of resource rich Indonesia plans to allow foreign investors to buy stakes of up to 40% in the country's commodity exchanges.

Mr Syahrul Sempurnajaya head of the Trade Ministry Commodity Future Trading Regulatory Agency said “We are planning to allow foreign companies to own stakes in Indonesia's commodity future trading exchanges, of up to 40% overall.”

The decision would cover the two futures exchanges now operating in Indonesia, the Jakarta Futures Exchange and the Indonesian Commodity & Derivatives Exchange, both seen as small players and largely bypassed for other commodities trading hubs such as the London Metals Exchange and Bursa Malaysia Derivatives Exchange.

The two exchanges are currently privately owned.

The ICDX and the JFX have both launched or announced plans for a wide range of commodity contracts in recent months, but attracting adequate liquidity has often been a problem.

Source - Reuters

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