As part of the Government’s policy to strengthen Indonesia’s position in the trading of strategic commodities and enhance Indonesia’s role in commodity price formation, the Government has encouraged the establishment of the Mineral and Strategic Commodities Exchange (Bursa Mineral dan Komoditas Strategis or “BMKS”) as domestic trading infrastructure for strategic commodities. The policy is, among others, aimed at establishing a transparent, liquid, and reliable market and supporting the establishment of an Indonesia Reference Price for strategic commodities, so that Indonesia will not only act as a producer but also play a greater role in commodity price formation in the global market.
The legal framework for BMKS was subsequently strengthened through Law No. 4 of 2026 on the Amendment to Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (“P2SK Law”), which mandates the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) to regulate and supervise transactions on BMKS.
As a follow-up to the above mandate, OJK issued two new regulations establishing the regulatory and operational framework for BMKS, namely OJK Regulation No. 15 of 2026 on the Phasing of the Transfer of Duties and Authorities for the Regulation and Supervision of Transactions on the Mineral and Strategic Commodities Exchange from the Commodity Futures Trading Supervisory Agency (Badan Pengawas Perdagangan Berjangka Komoditi or “Bappebti”) to the OJK (“POJK 15”) and OJK Regulation No. 16 of 2026 on the Operation of the Mineral and Strategic Commodities Exchange (“POJK 16”).
POJK 15 regulates the process for the transfer of regulatory and supervisory authority over BMKS from Bappebti to OJK, while POJK 16 establishes the framework for the operation of BMKS, including the structure of BMKS operators, trading mechanisms, transaction settlement, product development, and supervision of trading activities. As of 1 January 2027, the regulatory and supervisory functions over BMKS will be carried out by OJK.
BMKS is an organized and integrated market system for the trading of Strategic Minerals and Strategic Commodities, including their derivatives, supported, among others, by mechanisms for price formation, quality and quantity verification, transaction settlement, and risk management. The introduction of this new framework establishes a more structured trading infrastructure for Strategic Minerals and Strategic Commodities, while also creating opportunities for the development of digital-based financial instruments and derivative products.
For business actors, POJK 15 and POJK 16 should be taken into consideration as these regulations not only concern the transfer of regulatory authority but also introduce new provisions regarding the parties involved in BMKS, trading requirements, price formation, transaction settlement, as well as obligations relating to market integrity and supervision. The key provisions relevant to business actors are outlined below.
BMKS Operators
The BMKS Operators consist of:
- Exchange;
- Clearing Institution, being the party that performs clearing, transaction settlement guarantee, and transaction settlement functions;
- Electronic Custodian Institution (Lembaga Kustodian Elektronik or “LKE”), being the party responsible for the recording, safekeeping, security, and administration of BMKS;
- Exchange Members, which consist of:
- Users, being parties that use the services provided in the operation of BMKS;
- Trading Brokers, being parties conducting business activities relating to the execution of transactions on BMKS for their own account and/or on behalf of Users;
- other parties in accordance with the applicable laws and regulations.
- Warehouse Manager, being the party managing warehouses used in BMKS;
- Conformity Assessment Institution (Lembaga Penilaian Kesesuaian), being the party responsible for ensuring the conformity of the quality and quantity of Strategic Minerals and Strategic Commodities to be traded on BMKS; and
- Supporting Professionals.
Establishment of Exchange, Clearing Institution, and Electronic Custodian Institution
The following are the procedures and requirements for the establishment of the Exchange, Clearing Institution, and Electronic Custodian Institution:
| Exchange | Clearing Institution | Electronic Custodian Institution | |
| Licensing Authority | OJK | OJK | OJK |
| Issued and Paid-up Capital | IDR 1,000,000,000,000 | IDR 500,000,000,000 | IDR 500,000,000,000 |
Trading Activities on the Exchange
POJK 16 establishes the framework for the trading of Strategic Minerals and Strategic Commodities through BMKS, including transaction stages, product development, and trading supervision mechanisms.
BMKS transactions are conducted through three stages, namely pre-trade, trade execution, and post-trade. At the pre-trade stage, Strategic Minerals and Strategic Commodities may only be traded after obtaining tradable status from the Conformity Assessment Institution. Such status is granted based on, among others, quality inspection, quantity verification, storage in a warehouse approved by the Exchange, and fulfilment of administrative requirements. Once these requirements have been fulfilled, the Electronic Custodian Institution issues the Electronic Proof of Ownership.
At the trade execution stage, transactions are conducted through the Exchange’s trading system by entering orders directly by Users or through Trading Brokers. Transaction prices are formed based on an orderly, fair, transparent, and efficient market mechanism. Such transaction prices may be used as the Indonesia Reference Price, with the methodology subject to OJK approval and periodic evaluation.
At the post-trade stage, transaction settlement is carried out through the Clearing Institution. The Clearing Institution must ensure that settlement is conducted in a timely, secure, and efficient manner and must have mechanisms to address any failure in transaction settlement.
POJK 16 also allows the Exchange to develop new products, services, and trading mechanisms, including Digital-Based Financial Instruments representing rights over Strategic Minerals and Strategic Commodities, as well as derivatives trading over such commodities. Such development requires OJK approval and must take into account, among others, infrastructure readiness, risk management, and market integrity.
From a market conduct perspective, the Exchange is required to continuously supervise BMKS transactions and maintain mechanisms to detect and address market manipulation and unusual trading activities. Parties are prohibited from creating fictitious or misleading trading, price, or transaction volume conditions. Under certain circumstances, OJK may also order the temporary suspension or restriction of trading and/or adjustments to trading parameters.
For business actors, these provisions mean that transactions through BMKS will involve requirements relating to the tradability of commodities, asset verification and documentation, structured order and settlement mechanisms, as well as obligations to comply with market conduct requirements and the Exchange’s regulations. At the same time, the development of digital instruments and derivatives creates opportunities for new forms of transactions and exposure to Strategic Minerals and Strategic Commodities.
Conclusion
The issuance of POJK 15 and POJK 16 should be seen as the Government’s policy direction to develop BMKS as an integrated and regulated market infrastructure for Strategic Minerals and Strategic Commodities. In the near term, implementation will focus on ensuring the readiness of the BMKS ecosystem and market participants to comply with the new requirements on trading, verification, clearing and settlement, electronic ownership records, risk management, and market conduct, as well as the further rules and procedures to be issued by the relevant BMKS operators.
Disclaimer: This report is solely for general information only and never constitutes as legal or tax advice. The user shall further consult with any qualified advisor before referring to any or entire part of this report. Any available copyrights are reserved.
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MetaLAW, Legal Consultant, Jakarta, Indonesia
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