Nusa Dua, Bali (ANTARA News) - Energy and Mineral Resources Minister Ignasius Jonan stated that Indonesia must be able to determine the global tin price as Indonesia was the world's second largest tin producer.
"The government highlights tin trade. Tin exists in Indonesia as a natural resource. Therefore, Indonesia can reach a fair price, which is not solely controlled by the world trade," he said during the 2017 International Tin Conference and Exhibition here on Monday.
Indonesia is the second largest tin exporter after China, which contributes to about 70 percent of the worlds demand.
"Hence, we want to get a fair price, especially as we already have a tin exchange," Jonan stated.
He remarked that Indonesian Commodity and Derivatives Exchange (ICDX) could be a reference for the global tin price and could reduce illegal tin trade and transactions.
"The existence of this exchange can suppress illegal tin trade and transactions. The illegal activities can affect tin price and cause negative impacts to the environment at the mine site, including if the mine site is abandoned shortly after mining is completed, so that the environment becomes damaged," he revealed.
Commodity Futures Trading Supervisory Agency of the Ministry of Trade noted that Indonesia contributes 26 percent of the total global tin supply.
A number of parties wanted Indonesia to be the determinant of global tin price. ICDX and other parties continue to mobilize efforts to support Indonesia as a determinant of tin trade.
The tin trading floors in the world are located in ICDX, London Metal Exchange (LME), and Kuala Lumpur Tin Market. The price reference is not determined by the metal exchanges of the largest producers.
The global tin price determinant is dominated by the LME in London, in which United Kingdom is not a tin producer.
Indonesia has a commodity futures market in the last three years under the ICDX.
ICDX Chairman Said Aqil Siroj stated that after four years, the ICDXs tin price has become a reference for the trade actors in Indonesia and abroad. It proved that tin price sentiment from Indonesia has become one of the factors driving tin prices in the market.
In mid-July 2017, the ICDX had recorded the tin price at US$20,300 per metric ton. Although it was not the best price ever, the ICDX has helped boost tin price that was at $14 thousand per metric ton.
The 2017 International Tin Conference and Exhibition themed "Tin Beyond Boundaries Integrating the Tin Industry for Sustainable Economic Growth" took place from July 28 to 29 and was participated by 13 countries.
Source: Antara News