London, 7 August 2009 

Indonesia is launching a commodities exchange to trade crude palm oil and other raw materials, as reported in today's Financial Times, in a fresh sign of Asian emerging countries following the path of independent projects in Singapore and Hong Kong. 

In spite of being the world’s largest producer, Indonesia has been unable to set a palm oil benchmark price, with trading centred in neighbouring Bursa Malaysia in Kuala Lumpur.

“Indonesia is the world’s largest producer [of palm oil] so it deserves to set the benchmark prices,” Megain Wijaya, Managing Director of Indonesia Commodity & Derivatives Exchange (ICDX) told the FT.

The ICDX is targeting an October launch and will also focus on gold, and eventually coal Megain told the FT. He added that the exchange also intends to trade futures in Indonesia’s currency the rupiah.

The exchange has 11 founding members – all commodity traders – and had received a further two membership applications so far, he said. The gold business would be more important for domestic clients, Megain added.

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