Bappebti Introduces Sharia Based Physical Commodity Market

In an effort to bolster the liquidity of commodity futures trading transactions (“Transactions”), particularly through physical, sharia-based markets, the Commodity Futures Trading Regulatory Agency (Badan Pengawas Perdagangan Berjangka Komoditi – “Bappebti”) has decided to issue Regulation No. 5 of 2024 (“Regulation 5/2024”) on the Organization of Physical Commodity Markets Based on Sharia Principles (“Physical Sharia Markets”) at Futures Exchanges (“Exchanges”), which has been in force since 28 March 2024.[1] In this regard, it should be noted that any Bappebti regulatory frameworks that address the organization of the physical commodity market at Exchanges will remain applicable unless a given area is specifically addressed under the new framework of Regulation 5/2024.[2]