Investment instruments, including Commodity Futures Trading, have undergone a significant evolution. Traditionally, traded commodities included primary products such as agriculture, mining, and energy. However, with the advent of the digital era, the range of traded commodities has expanded to include financial products like stock indices, foreign currencies, and volatile cryptocurrencies. In this article, we delve into what Commodity Futures Trading is and the regulations governing it. Read on for more details.

What is Commodity Futures Trading?

According to Bappebti.go.id, Commodity Futures Trading encompasses everything related to the buying and selling of commodities with margin calls and settlements based on futures contracts, Islamic derivatives contracts, and other derivative contracts. The definition of a Commodity in the law is anything that can be subject to a futures contract for Islamic derivatives and or other derivative contracts as regulated by the Head of Bappebti.

Benefits of Commodity Futures Trading

There are three main benefits of Commodity Futures Trading, which include:

  1. Risk Management: This involves hedging or value protection.
  2. Price Discovery
  3. Investment Alternatives

In terms of products subject to a commodity, there are two categories: primary products of the financial group and non-primary products from non-financial products. Non-primary products include agriculture, plantations to mining, while primary products are stocks, bonds, interest rates, foreign currencies, and crypto assets.

Cryptocurrency Trading

Cryptocurrency or crypto assets are digital assets that use cryptography to secure transactions and control the creation of new units. In Indonesia, crypto assets are regulated under the Minister of Trade Regulation Number 99 of 2018, which designates crypto assets as commodities that can be the subject of Futures Contracts traded on the Futures Exchange.

As of January 2024, there have been 501 crypto assets listed for trading, with 32 Prospective Physical Crypto Asset Traders (CPFAK) providing buying and selling services and crypto asset investments. Here is the list:

  1. PT Aliansi Koin Indo
  2. PT Aset Instrumen Digital
  3. PT Aset Kripto Internasional
  4. PT Bursa Kripto Indonesia
  5. PT CTXG Indonesia Berkarya
  6. PT Cyrameta Exchange Indonesia
  7. PT Gerbang Aset Digital
  8. PT Kripto Inovasi Nusantara
  9. PT Medi Crypto International
  10. PT Ventura Koin Nusantara
  11. PT Sentra Bitwewe Indonesia
  12. PT Tumbuh Bersama Nano
  13. PT Kagum Teknologi Indonesia
  14. PT Aset Digital Berkat
  15. PT Aset Digital Indonesia
  16. PT Bumi Santosa Cemerlang
  17. PT Cipta Koin Digital
  18. PT Coinbit Digital Indonesia
  19. PT Galad Koin Indonesia
  20. PT Gudang Kripto Indonesia
  21. PT Indodax Nasional Indonesia
  22. PT Indonesia Digital Exchange
  23. PT Kripto Maksima Koin
  24. PT Luno Indonesia LTD
  25. PT Mitra Kripto Sukses
  26. PT Pantheras Teknologi Internasional
  27. PT Pedagang Aset Kripto
  28. PT Pintu Kemana Saja
  29. PT Plutonext Digital Aset
  30. PT Rekeningku Dotcom Indonesia
  31. PT Tiga Inti Utama
  32. PT Triniti Investama Berkat
  33. PT Upbit Exchange Indonesia
  34. PT Utama Aset Digital Indonesia
  35. PT Zipmex Exchange Indonesia

The Key Players in Commodity Futures Trading

Understanding the different roles involved in Commodity Futures Trading is crucial. Here’s a breakdown of the main players:

  1. Users (Investors): These are individuals who buy and sell commodities hoping to make a profit.
  2. Futures Exchange: Imagine a marketplace specifically for futures contracts. This is what a Futures Exchange provides – a platform for buyers and sellers to come together and trade these contracts.
  3. Futures Clearing Institution: Think of them as the middleman ensuring everything runs smoothly. They handle the clearing and settlement of futures contracts, minimizing risk for both sides.
  4. Futures Broker: A Futures Broker acts as your representative, buying and selling contracts on your behalf. They typically charge a fee or require a margin deposit to cover potential risks.
  5. Futures Trading Members: These are exclusive members of the Futures Exchange who can directly trade contracts for themselves or their companies.
  6. Regulator (Bappebti): This government agency oversees the entire show. Bappebti ensures fair play, maintains order and efficiency in the market, and promotes healthy competition.

Conclusion

Commodity futures trading is strictly regulated in Indonesia to ensure transparency, fairness, and protection for all participants. Similarly, crypto assets are subject to regulations to maintain stability and confidence in the market.

The government aims to support innovation in both areas through comprehensive regulations. For instance, granting permission to clearing institutions like PT Kliring Komoditi Indonesia strengthens the domestic crypto asset investment ecosystem.

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