Jakarta, CNBC Indonesia – The Ministry of Energy and Mineral Resources (ESDM) has opened its voice regarding plans to establish its own domestic nickel exchange. The government revealed that until now there has been no latest news regarding the formation of the exchange.
Special Staff to the Minister of Energy and Mineral Resources for the Acceleration of Mineral and Coal Governance, Irwandy Arif, said that up to now there has only been a request for the establishment of a domestic nickel exchange, but the Commodity Futures Trading Supervisory Agency said there has been no further study regarding the formation of such an exchange.
“So if we look at it up to now, according to the Head of the Commodity Futures Trading Supervisory Agency, it is true that they have just received a request to form an exchange, and there has been no further study,” explained Irwandy to CNBC Indonesia in the Mining Zone program, quoted Thursday (19/10/2023).
Even so, Irwandy said that his party still hopes that the plan to establish a nickel exchange will provide an opportunity for the world nickel reference price to be based on Indonesia.
“However, several of the association’s friends are currently carrying out this process. Of course, it is hoped that in the future this nickel exchange will provide an opportunity for the world nickel reference price to be based on the Indonesian nickel exchange,” he added.
Apart from that, he said this was in line with Indonesia, which is the world’s largest nickel producer. “So this is because we have the largest reserves, the largest production in the world,” he concluded.
Prometindo Advisory Board, Arif S. Tiammar, said that his party supports Indonesia’s plan to have its own nickel exchange. This is because so far Indonesia has been pegged to prices on the London Metal Exchange (LME) and Shanghai Metal Exchange Market.
“Well, we are one of the players or the formation of the nickel exchange, how beautiful it would be, we can also be sovereign in our own country with an educational taste called the Indonesian Nickel Index, or the nickel exchange that was mentioned earlier,” explained Arif to CNBC Indonesia in the Mining Zone program. , quoted Thursday (19/10/2023).
Apart from that, he said that currently Indonesia has succeeded in establishing the Indonesia Coal Index which is managed by PT Index Coal Indonesia. In this way, in the near future, he hopes that nickel in Indonesia can catch up with the coal index by forming the Indonesian nickel index.
“In the near future, hopefully it will also flow in this direction, the Indonesian Nickel Index, where we become producers, we become players, we will even determine the price as the Indonesian nation,” he added.
Arif said that his party welcomed the plan to establish a domestic nickel index to support the country to become a player in the world nickel commodity. “I think this is a step that should really be welcomed throughout the world,” he said.
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