REPUBLIKA.CO.ID,  JAKARTA - Indonesia's Tin Exchanges was officially launched this week. This is the first time Indonesian tin export traded through commodity exhanges. This method of transactions will form tin prices transparently, so Indonesia's tin price can become world reference.

Minister of Trade Gita Wirjawan said Indonesia's tin reserves was number five in the world. Indonesia is also second largest producer and the biggest exporter in the world. Yet, unlike London and Asia Pacific Exchanges, Indonesia does not have bargaining position to control market and pricing.

"We don't have the capacity to determine dynamic of market. In the future, we must be able to combine power with economic capacity," Wirjawan said recently.

In the first opening, Indonesia's Tin Exchanges sold five lots or 25 tonnes of tins type PB300 at price of 21,510 USD per ton just in seven minutes. Indonesia's Tin Exchanges can also prevent under invoicing practise, increase royalty revenues, prevent illegal trade, improve competitiveness of Indonesian tin.

Tin traded by Indonesia has high quality and standard specification with content of Stannum (Sn) at 99.9 percent. Tin with low quality and standard below 99 percent cannot be exported.

There are five types of tin contracts traded here, namely PB300, PB200, PB100, PB50 and 4NINE. There are 12 members ready to transact physical tin contract in the future market. Those members are PT Timah, PT Tambang Timah, PT Refined Bangka Tin, PT Mitra Stania Prima, PT Inti Stania Prima, H CO Ltd, Daewoo International Corporation, Gold Matrix Resources, Great Force Trading, Noble Resources International Put Ltd, Purple Products Pvt Ltd and Toyota Tsusho Corporation.

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