The start of tin trading on the Indonesia Commodities and Derivatives Exchange, due to begin on January 12, is now being opposed by the new president and some members of the Indonesian Tin Association. The physical tin contract, under the code INATIN, was formally launched in mid-December. According to the Jakarta Post the launch was attended by deputy trade minister Bayu Krisnamurthi, Bangka Belitung governor Eko Maulana Ali, Commodity Futures Trading Supervisory Board (Bappebti) head Syahrul Sempurnajaya, and several tin companies. PT Timah President Director Wachid Usman and ITA chairman Rudi Irawan were installed as chairman and deputy chairman of Tin Committee. However following a split between ITA members, Rudi was then replaced as head of the organisation by Hidayat Arsani.
“About 90 percent of ITA’s 28 members denounce INATIN. We won’t sell tin to that market,” Hidayat told The Jakarta Post in a telephone interview before Christmas. Hidayat said that the launch of INATIN ran contrary to ITA’s plan to establish a tin market under the name of Bangka Belitung Tin Market in Bangka Belitung, Indonesia’s tin producing area. “We do want a tin market, that’s why we have mandated a team in which Wachid serves as chairman and Rudi as member to process the establishment of the market. However, we, including Bangka Belitung governor, are shocked because they established INATIN instead of Bangka Belitung Tin Market,” Hidayat said. Hidayat said that he and several other members of ITA had previously signed an agreement for the establishment of the tin market. “However, I’ve already withdrawn my signature,” he said.
ICDX’s head of product development Retno Manuputty said that the dispute in the ITA was an internal conflict that had no connection to the commodity bourse. Retno declined to reveal which tin companies or smelters had already agreed to trade their products in the INATIN physical market despite a rejection from most members of ITA.