Indonesia to launch ICOMEX Mineral Exchange, ferronickel trading set for January 2027

Indonesia, the world's top nickel producer, is gearing up to launch ICOMEX (Indonesia Commodity Exchange), a dedicated exchange for minerals and strategic commodities, with the goal of boosting the country's pricing power and creating domestic benchmarks for strategic minerals.

The Indonesian Financial Services Authority (OJK) inaugurated the exchange on September 17 and has started drafting the regulatory framework governing its operations. Full trading is slated to begin on January 4, 2027.

Tin and ferronickel are expected to be among the first commodities listed on the exchange, with state-owned mining companies in Indonesia likely to take part.

Tin, which already has a well-established trading ecosystem in Indonesia, is being considered as one of the initial commodities to be traded. The addition of ferronickel carries particular weight for the stainless steel raw material market, given Indonesia's dominant role in global nickel supply.

The central aim of ICOMEX is to allow Indonesia to shed its primary role as a mineral producer and exporter and instead play a bigger part in setting benchmark prices for its strategic minerals.

Even though Indonesia holds a strong position in the production of nickel and other strategic minerals, the pricing of its products has traditionally been shaped by international markets and benchmarks such as the London Metal Exchange (LME).

The OJK intends to progressively put in place the exchange's trading participants, trading mechanisms, clearing and settlement systems, risk-management framework, and market-integrity and supervision mechanisms.

ICOMEX is scheduled to receive its operating licence on January 1, 2027, with full-scale trading to follow three days later.