OVERVIEW

Aiming to reduce price fluctuation risks, commodity traders in Chicago initiated the establishment of commodity futures trading around two centuries ago. The concept of such trading revolves around an agreement between commodity sellers and buyers to enter into a transaction under which the commodity will be delivered at a certain time in the future at a price agreed at the time the agreement is made.[1]

Since then commodity futures trading has been implemented by many countries, including Indonesia. Being a key producer of high demand commodities, commodity futures trading has a significant role in Indonesia’s economic development. In this regard, the government realizes the importance of having clear regulations on commodity futures trading and providing legal certainty for all commodity futures trading stakeholders, especially during times of economic crisis like in the nineties.[2]