Indonesia targets price influence via 2027 commodity exchange

Indonesia plans to launch a new commodity exchange on January 1, 2027. The regulator aims to shift from taking prices to influencing them. This move targets the global markets for nickel, palm oil, and coal.

Sarjito, the new chief commodity trading supervisor, stated the initial goal is to become a price influencer. The long-term objective is to become a price maker. No specific timeline was provided for reaching the final stage.

Regulatory strategy for market impact

Sarjito was sworn in as the Financial Services Authority regulator on Wednesday. He noted that the exchange should start with modest targets. The goal is to establish the platform as a global reference point.

The new bourse is part of President Prabowo Subianto’s resource policy. Prabowo stated that Indonesia should retain commodities rather than sell them cheaply. This stance reflects a desire for greater control over natural resources.

Commodity export dominance and risks

Indonesia is the world’s largest exporter of thermal coal, palm oil, and nickel. It is also a major seller of tin, copper, and coffee. Current export policies already impact benchmark prices in Malaysia, London, and Shanghai.

Analysts warn that mandatory trading could drive buyers to other exchanges. This risk arises if price differentials become too wide. Industry veterans suggest the plan could backfire if buyers seek cheaper alternatives.

Regulatory deadlines and fiscal controls

Sarjito must complete commodity trading regulations by September 17. The exchange is also designed to tackle tax leakage. It aims to address under-invoicing and transfer pricing by exporters.

The specific commodities to be traded will be defined in a presidential regulation. Sarjito did not disclose the list during his briefing. According to GN markets/commodities (en-US), the exchange launch is a key pillar of the new economic strategy.