Friday, October 14, 2011

INDONESIA - CAPITAL MARKETS - Jakarta Futures Exchange to start Sharia-backed commodity products

thepeninsulaqatar.com - JAKARTA: The Jakarta Futures Exchange (JFX) will launch sharia-compliant commodity contracts next week, one month behind schedule, a director at the exchange said yesterday.
The exchange will launch contracts for five agricultural products of which Indonesia is a major exporter, including coffee, cocoa and raw cashew nuts, Bihar Sakti Wibowo, a director at the exchange told reporters.
The contracts were expected to be kicked off in mid-September. (source)


Other commodities such as crude palm oil, palm oil products (olein) and coal would soon be added, Wibowo said, with trading due to begin next week and involve Bank Muamalat, Bank Syariah Mandiri and Bank HSBC Amanah.
“We have set a target for sharia commodity transaction at over 5 billion Indonesian rupiah ($560,067.208) per bank per day,” Wibowo said. “When the sharia contract is established, its daily transaction value has a potential to reach hundreds of billion rupiahs per bank.”
Both Indonesia’s future trading regulatory body and National Sharia Council at Indonesian Ulema Association (MUI) have approved the new scheme, Wibowo said in August.
In the Middle East, the Dubai Gold Securities, a sharia-compliant exchange-traded commodity -- the first of its kind -- was launched in 2009 by the Dubai Multi Commodities Centre (DMCC) and the World Gold Council. It is also listed on the NASDAQ.
There is also a hedge fund that trades various sharia-compliant metals contracts on the DMCC.
Tin contracts on the London Metal Exchange and crude palm oil on the Malaysia Derivatives Exchange, are often traded using Islamic principles and platforms provided by banks. The Indonesia Commodity & Derivative Exchange (ICDX) has launched a number of products over the past 18 months, including gold, and palm oil. REUTERS

Source : http://www.thepeninsulaqatar.com/business-news/169042-jakarta-futures-exchange-to-start-sharia-backed-commodity-products-.html  - Oct 14, 2011

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