Jakarta, 22 July 2021 - The Indonesia Commodity & Derivatives Exchange (ICDX) Group managed to record a growth of 57.9% in multilateral transactions in the 1st semester of 2021. The growth of ICDX at the age of 12 this year is evidence of ICDX's efforts in building an ecosystem of integrated commodity futures trading through the structured operations of the ICH Clearing House and the ILB logistics center. In order to achieve a liquid, safe and efficient financial market, the development of integrated financial market infrastructure is a catalyst for industrial progress.
ICDX's commodity derivative products consisting of gold, crude oil, and foreign exchange (GOFX) are one of the main contributors to the achievement of ICDX multilateral derivative transactions. As of June 2021, total GOFX transactions have reached 294,658 lots settled. This figure is an increase of 137% when compared to the same period in 2020. Overall, until June 2021 multilateral trading on the ICDX exchange has touched the figure of Rp126 trillion. To support this growth, this year ICDX has launched four new foreign exchange spot contracts, namely NZDJPY (Micro), EURCHF (Micro), GBPCAD (Micro), and CHFJPY.
On the other hand, the physical tin trade also experienced rapid growth and showed an upward trend this year. Since being traded through ICDX from August 2013 until June 2021, total tin exports reached 417,331 metric tons, equivalent to USD8.2 billion or IDR1,188 trillion. This shows that Indonesia can become the backbone of the world tin market, and the tin market is expected to contribute more to the Indonesian economy.
"Currently ICDX is highlighting the condition of the global green economy. Indonesia has the opportunity to become one of the carbon trading centers and implement a green economy. With a vast landscape and natural resources that make it one of the lungs of the world, Indonesia has great potential to become a major carbon producer. Our lands have been endowed with great carbon sequestration capabilities and contribute 75 to 80 percent of the world's carbon credits. Seeing the high importance of efforts to tackle global warming, carbon credits can be a very strategic and sustainable commodity," said ICDX President Commissioner, K.H Said Aqil Siradj.
“Globally, thousands of companies have committed to being carbon neutral by 2050, this is in line with the 2015 Paris Agreement. In most cases, these companies cannot change their technology solutions in such a way that they no longer emit greenhouse gases. Instead, they have to buy carbon credits on the market to offset their remaining greenhouse gas emissions. Carbon offsets are generated either by companies that reduce carbon emissions below agreed baselines or by companies that capture carbon from the atmosphere, for example through forestry projects,” added ICDX CEO Lamon Rutten.
This year, ICDX is also preparing a physical-digital gold market, a physical crypto-asset market, a Warehouse Receipt System (SRG), and a Commodity Auction Market (PLK). With the existence of a physical-digital gold market, it is hoped that the public can be protected from harmful actions or fraud, and avoid illegal transactions. Meanwhile, the establishment of SRG and PLK is expected to create transparent prices so that it can provide benefits for business actors, sellers, and buyers.
ICDX sees the potential of SRG to help finance farmers who have difficulty in getting access to financing their farming so as to reduce the dependence of farmers on intermediaries. As the Registration Center, ICH will record the commodities stored in the warehouse, so that it can help the government to check the availability of commodity stocks in the regions. ICH will collaborate with financial institutions, both banking and non-banking, in facilitating financing for owners of commodities stored in warehouses and registered at the ICDX Registration Center.
With the SRG, it is hoped that the farmers will get a better selling price than before by using the deferred selling system. In addition, transactions at PLK of ICDX are also expected to provide security guarantees for buyers and sellers so as to reduce the risk of default and failure to pay. The price formed from the auction process is also expected to be the reference price for the commodity. In the future, ICDX plans to integrate SRG and PLK, where goods stored in the SRG warehouse and recorded at the Registration Center can be auctioned by ICDX through PLK.
“ICDX hopes to continue to increase our transaction value this year. Of course, the current achievements cannot be separated from the support of many parties, starting from Bappebti as our regulator, brokers, partners, and investors. We hope to continue to synergize well with all parties to be able to achieve greater achievements in the years to come,” concluded Lamon Rutten.