Jakarta - Taking the status of tin producer number 2 in the world and controlling 70% of the world market share, not the guarantee of Indonesia becoming the global tin price determinant. Indonesia's average tin production reaches 90,000 metric tons, and most of it is mined from Bangka Belitung.

However, the determination of world tin price is still dominated by LME (London Metal Exchange) in London, England.

"For hundreds of years determined by LME. So, with the existence of ICDX (Indonesia Commodity Derivatives Exchange) is lucky for whom? Make our miners to be a reference, other countries have no goods but can set the price, "said Bachrul in Indonesia Tin Conference and Exhibition, Jakarta, Thursday (18/08/2016).

He continued, in addition to domestic tin miners who can rely on ICDX, local government (Pemda) can also calculate revenue from tin mines in the region more definitely.

"Prices on the outside exchanges are very volatile, with tin sold at ICDX, local governments already know the price so know the royalty receipt will be predictable. Then they also can predict already know when to switch rely on royalty tin, "said Bachrul.

According to him, commodity traders in global markets such as LME also sometimes have no physical from the tin that it sells. This is what makes commodity markets so turbulent.

"We certainly have the goods. They are there mostly traders. With its own exchanges, there are benefits of certainty of tin supply and quality assurance. Then the openness of price transparency, "explained Bachrul.

From transaction data, ICDX already traded 18,000 metric tons of tin ingot or alumina, rising in 2014 to 54,000 metric tons, then 2015 rose to 70,000 metric tons, and last January-July period was 32,600 metric tons.

"Now ICDX started to be a reference, indeed we are only 3 years old, compared with the LME that has been hundreds of years. There are currently 63 companies listed on ICDX, with 34 sellers and 29 buyers who traded bargaining on ICDX exchanges, "Bachrul said.

Photo: Muhammad Idris-detikFinance

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