Indonesia Now Has a Special Committee for Digital Gold Players

The Jakarta Futures Exchange (JFX) inaugurated a special committee for dealing with digital gold players through a decree SK/193/DIR/BBJ/VI/20 concerning the formation of a physical digital gold market committee.

The formation of this committee is a mandatory stated by the CoFTRA legislation, as well as to oversee the increasing number of digital gold players in Indonesia.

In the copy of the decree received DailySocial, there are nine people who sit in the positions of chairman, vice chairman, and members. CEO and Founder Orori George Budi Sumantri was appointed chairman of the committee, while ABI Commodity Futures Commissioner Budi Lestijawan Eka Saputra became deputy chairman.

The rest are members filled by several startup players, such as Co-Founder Pluang Claudia Colonas, CEO and Co-Founder of Tamasia Muhammad Assad, and Indogold CEO Amri Ngadiman. There are representatives from each of the other institutions, such as Pegadaian, Pos Indonesia, and Clearing Futures in the ranks of members.

Furthermore, in the copy of the decree, it is explained that the committee is tasked with facilitating the needs of members and intermediaries with the government. The Committee provides consideration and/or advice on all issues related to trading the Digital Gold Physical Market.

These include researching and providing written considerations to the Board of Directors of the Exchange regarding the proposed changes to the Digital Gold Physical Market Rules and Regulations; act as a mediator in the event of a dispute between digital gold participants; provide written considerations and recommendations to the Board of Directors of the Exchange, and so on.

Article 3 states that the committee will serve for two years from the date of enactment of the decree dated June 10, 2020. The next article states that members have the right to resign, for appointments, changes, and/or additions of members will be made by Decree of the Board of Directors of the Exchange.

To DailySocial, Chairman of the Physical Digital Gold Market Committee George Budi Sumantri explained that through this mandate, at the initial stage he would encourage all digital gold players in Indonesia to follow the law and have a license as a Physical Digital Gold Trader.

Roughly speaking, the players are still under 50. But those who are licensed can still be counted on the fingers. Therefore, the committee will temporarily list all similar players and submit the report to CoFTRA to be followed up and take permission.

"Beyond the members of the [committee] here, they mean that there has been no initiative to take a permit," he said.

It should be noted that CoFTRA stated that the sale of physical gold digitally must obtain a business license. This is because the agency under the Ministry of Trade has issued digital gold trading regulations in Indonesia through the futures exchange. This provision is written in CoFTRA Regulation Number 4/2019 concerning Technical Provisions for the Implementation of the Digital Gold Physical Market on the Futures Exchange.