BALI, BANGKA POS - Indonesia has become the determinant of world tin price. This indication is seen from the price movement of tin in London Metal Exchange (LME) which majority follow Indonesian Commodity and Derivatives Exchange (ICDX) as the tin market of the country.
So far, the world's tin exchanges almost always refer to the LME.
Head of Commodity Futures Trading Supervisory Agency (Bappebti) Bachrul Chairi said the LME trend following ICDX occurred in the last three years. The statement was delivered at the 2016 International Conference and Exhibition (ITCE) event at the Sofitel Hotel, Nusa Dua, Bali, Monday (19/9).
"We have not been able to claim, but at least now ICDX movement is already majority followed by LME. What that means, meaning is the position rather than the formation of that price because we are the world's suppliers have shifted us to fulfill Indonesia's contribution to the world, "Bachrul said.
ITCE 2016 deliberately held ICDX in Bali. Taking the theme "Navigating Indonesia Becoming The Global Leader in Tin Industry", the event was also attended by 25 tin traders and representatives from USA, Germany, Japan, Korea, Malaysia, Singapore and UAE.
At least 200 participants from 10 Asian, European and American countries took part in this activity.
Bachrul says ITCE 2016 is vital to shaping the future of tin. Indonesia as the biggest supplier must have bargaining power and contribution to the world tin price determination. Through ICDX, although still young, it seeks to contribute to the world's tin price.
"We hope to be the leader of world tin prices. But some steps must be taken to strengthen the tin industry. What the government has done is determining the purity of tin and it is expected that tin industry is more conducive from upstream to downstream, avoiding illegal mining, environmental sustainability that has an effect on export tin requirement. We will create a high quality product, "he said.
ICDX Chief Executive Officer Megain Widjaja said it felt the Indonesian tin industry should be able to map the issues and answer the various challenges that exist, either from within or from abroad.
"With the various innovations and commitments undertaken, as well as the support and control of the government, we are convinced that prices at ICDX will have a greater capacity in tin price formation," Megain said.
Based on transaction data on the exchange, ICDX noted Indonesia's tin exports continue to increase significantly. In 2014 (January-December) Indonesia exported tin more than 50,000 metric tons, increased sharply to more than 66,000 metric tons in the same period in 2015, the volume of export transactions in that period increased by 28.25%.
This shows the growing performance of Indonesia's tin export industry.
"As the 2nd largest tin producer and the largest tin exporter in the world, Indonesia should be able to continue to improve its competitiveness in order to attract world tin business actors to conduct transactions and store tin products that have been purchased, in Indonesia," he said.
Almost boycotted Increased sales of tin through ICDX assessed Bachrul helped eliminate the issue of companies in Indonesia is not environmentally friendly. Previously, giant companies such as Apple, Samsung, and Phillips had threatened to boycott Indonesian lead if the company is not environmentally friendly.
"In the context of the world before we apply from our sales through organized stocks like now, the issues of the environment are very prominent and even then Indonesia is preparing to be boycotted for the use of those derivatives by big companies like Samsung, Apple, Phillips see Indonesia is not suistainable because their products are requested by consumers and good governance it to be environmentally friendly, "said Bachrul.
"Tin at that time including those threatened the government must immediately take action to do we agree to make a sale through the media exchange, but it is important that everything sold on the exchange must meet the environmental aspects and must fulfill their obligations to the state in the form of royalties and Fulfill this suistainable concept. "
"Well this concept is blend and ICDX is as its gateway is more important to it that all this time because of our small power of exploitation that we actually dikmaikan by buyer, price determined by buyer."
"The world's need for tin is increasing along with the development of electronic products and robotization. Although the world economy is weakening, but the world's demand for tin has not decreased, but tends to increase. (Wan)
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