The Badan Pengawas Perdagangan Berjangka Komoditi (Bappebti) is the official regulatory body for commodity futures trading in Indonesia, as well as other derivative trading markets.
Bappebti provides the policy framework and operating polices regarding commodity futures transactions, implementing its function under the Ministry of Trade. Bappebti helps design, monitor, and develop the commodity futures market, as well as features and delivery-based commodity services in Indonesia.
Bappebti was established under Law No. 32 of 1997, as amended and published in 2005, to regulate specific sectors of the financial services industry. It is funded by the government and organized under a Board of Administrators, which is recognized and appointed by the state and is knowledgeable in this field.
Key Functions and Power to Regulate
• Function of the Futures Market
Bappebti establishes a legal and functional framework for commodity futures trading and marketplace participants, including terminal operators, wholesalers, and others, by issuing regulations, rules, guidance, and directions.
• Market Monitoring and Governance
The operation of brokers, clearing houses, and commodity exchanges in Indonesia is governed and monitored by Bappebti, which oversees compliance and adheres to national laws and internationally accepted standards.
• Development of the Market
Legal compliance is highly regarded, as Bappebti oversees and monitors market practices.It also seeks to promote the development of physical commodities markets and generate investment opportunities in futures based on commodity-based financial products, aiming to support greater efficiency and transparency in the market.
• Conflict Resolution
As a part of protecting and supporting investors, Bappebti has been proactive in creating mediation services to facilitate the resolution of disputes between clients and market participants.
Bappebti Cust believes that mediation of conflicts through a digitally enhanced service (e-Mediation) would be more useful as an intermediary between commodity futures exchanges and internal conflict resolution initiatives, or online complaint management.
Transition of Regulatory Oversight of Digital Assets
Regulation and oversight of digital financial assets (including cryptocurrency trading) in Indonesia began to transfer from Bappebti to Otoritas Jasa Keuangan (OJK), the Financial Services Authority of Indonesia. This transfer began as mandated by Law No. 4 of 2023 (PPSK Law) and Government Regulation No. 49 of 2024.
On January 30, 2024, the OJK was given authority through OJK Regulation No. 27 of 2024 (POJK 27/2024) for licensing authority, supervision of Trading Portals, and licensing and regulatory compliance of all transactions related to the registration of digital assets. Bappebti will still retain its licenses for the duration until they are transitioned to OJK.
Coordination During the Transition
The transfer required coordination on behalf of Bappebti, OJK, and Bank Indonesia to maintain diligence and communication to develop a purchased advisory regulatory around this model, to set the direction of structure of oversight supported by modern supervisory platform; and to keep the direction of the market of digital assets in line with the aim of the use of digital assets and security on the node surrogate circuits and maintain a level of investor confidence for future stability.
Indonesia
