In conducting transactions, market players certainly need facilities to hold these activities. In accordance with applicable laws in Indonesia, there is an ICDX that provides services in the form of facilities and infrastructure for market players themselves. So, this time we will discuss in more depth what the ICDX is.

ICDX will organize commodity trading with an organized and safe exchange mechanism for market players, and will later be assisted by the ICH (Indonesia Clearing House) Clearing Institution and logistics center (ICDX Bonded Logistics). For more details about ICDX, you can read the article below. However, before understanding more about ICDX, it would be better if you participate in filling out GIC's internal survey for our better platform.

What is ICDX?

What is ICDX? ICDX stands for Indonesia Commodity and Derivatives Exchange which is usually also called Indonesia Commodity and Derivatives Exchange (BKDI). Almost similar to the JFX futures exchange, ICDX is an exchange that has a position as an exchange for transactions from futures trading. In this case, the clearing guarantor who will guarantee the quality and quantity in accordance with the contract at ICDX is PT Identrust Security International which has now changed its name to Indonesia Clearing House.
 
Like an exchange, making transactions at ICDX can be done for the purpose of hedging or solely to be able to get margin and investment profits. The buying and selling activities at ICDX can be classified into a multilateral transaction system that occurs between many parties with other parties as well (many to many). Thus, everyone who wants to sell or buy on the ICDX exchange cannot know who their transaction partner is.
 
Moreover, to make transactions on ICDX can be done completely electronically, namely through a sophisticated technological platform that has been provided by itself, namely J-Trader. Indonesia Commodity & Derivatives Exchange (ICDX), also known as the Indonesian Commodity and Derivatives Exchange (BKDI) which is a commodity and derivatives exchange based in Indonesia. The vision of ICDX is to become an exchange on the global market that can improve national welfare, with a mission that can be a benchmark for determining commodity prices in the world through primary products in Indonesia.

ICDX itself is an exchange that has been supported by its members, consisting of brokers and traders who have been regulated by BAPPEBTI. ICDX members will facilitate a customer transaction service that includes every contract of ICDX commodity futures trading. Trading on ICDX will be completed, guaranteed, and also cleared by the Indonesia Clearing House.

What are the Functions and Duties of ICDX?

The establishment of Commodity Futures Trading (PBK) in Indonesia, which through the exchange is expected to be the center of local commodity trading and provide facilities for hedging for commodity traders themselves. Thus, trading of Indonesia's leading commodities through the exchange can produce a reference price so that it will not depend on the market abroad. Through the commodity exchange in the country, market players can also obtain prices that will be more profitable.

Manufacturers can also sell at a higher price, while manufacturers can also buy at a lower price based on a transparent market mechanism. As a commodity exchange itself, one of the main objectives of ICDX is to create an atmosphere in a fair commodity market, easy access, and can also be regulated very well in Indonesia through the exchange mechanism. To achieve this, ICDX is trying to build an ecosystem that is highly integrated with a clearing house and logistics system.

The infrastructure of this integrated commodity market must also be able to support each other and be sustainable to form three pillars in a commodity futures trade that will potentially increase the competitiveness of commodity market players in Indonesia. Before continuing the transaction process on ICDX, you can register yourself by becoming an IB or inviting friends so that you get additional bonuses from GIC for trading or you can withdraw them directly.

Transaction Process at ICDX

There are two types of transactions that can be carried out by members at ICDX, including:

Multilateral

In this transaction process, the mechanism is:
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  • All prices and liquidity will be determined by buyers and sellers.
  • The exchange will not take a buy or sell position on the futures market, but the exchange has a role as a provider of a place, means, and system for its members involved in the transaction process.
  • Buyers and sellers who do not know each other.

PALN

The PALN transaction process also has a mechanism and workflow which is almost the same as what is happening on the stock exchange in general, namely:
  • Customers who wish to make a buy or sell transaction must convey their mandate to the futures broker.
  • The broker who is being mandated will then forward it to ICDX, which will then coordinate directly with ISI for clearing purposes.
  • This mandate will then be forwarded to futures brokers who have become members of foreign exchanges.
  • Members of the foreign exchange will then forward the order to the exchange abroad.

What is GOFX Trading?

GOFX is a derivative instrument product consisting of Crude Oil Futures Contracts, Gold Spot Contracts, and also mini-sized Forex Spot Contracts (1/10 of the standard contract). These products will be traded multilaterally on the ICDX commodity exchange, where in practice, multilateral trading will occur between many sellers and buyers. This trade will allow many sellers to meet many buyers, so that fair and transparent trade will be created. The more bid prices (from sellers) and requests (from buyers), the closer the price that can be formed from the trade will be to the market price.

The multilateral system that occurs on this exchange will potentially be able to make the price of commodity trading in Indonesia as the reference price of commodities for international trade itself. If the contract from this mini GOFX is still too large for you, then there is ICDX which also issues GOFX Micro, where GOFX Micro contains a collection of spot and futures contracts that are micro-sized (1/100 of the size of a standard contract). The players in the GOFX market itself generally consist of; business industry, financial institutions, traders, and retail players.

Products from ICDX

For products from ICDX itself, ICDX has products in the form of gold, crude oil, and forex. For the explanation, you can read below.

Gold

As we know, gold itself is one of the oldest wealth management instruments in the world. In addition to its rarity and its resistance to chemicals and weather, gold also tends to be resistant to erosion of inflation, which can then be used as a means of storing value that is considered safe. Worldwide, the total investment for nine years (2010-2019) has reached 13,019.4 tons, with an average annual investment of 1,301.9 grams. Not only that, the demand for gold production in several countries in the world from 2010 to 2019 has reached a total of 39,709.2 grams, with an average total annual production demand of 4,438.3 grams. This figure has become concrete evidence that the demand for gold from year to year will always exist, even gold has the potential to continue to increase its numbers. Therefore, gold then remains the prima donna of this ICDX product, both for investment instruments and for other interests.

Crude Oil

Similar to gold, this crude oil commodity is also one of the main natural resources that are very much needed, both for individuals and industries around the world. Crude oil itself is also a basic material for making various types of fuels and petrochemicals to be used as fuel for transportation and power plants. In more detail, products for daily activities whose main ingredients are crude oil are LPG gas, gasoline, diesel, paraffin, lubricants, asphalt, petrochemical industry, and also olefins. From ICDX data, as of 2019, the total consumers of petroleum use worldwide had reached 59,329.46 barrels. So, crude oil is also included in assets that have great potential, because the market is dynamic and there will always be a need for crude oil commodities which are used as one of the main sources of energy in the world.

Forex

Forex (foreign exchange) or in Indonesian also known as forex (foreign currency), is a trading and currency exchange activity, due to the need for foreign currency from the needs of the community itself, such as:
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  • The need for a vacation abroad;
  • Business activities such as export or import of goods.
From a survey conducted by the Bank for International Settlement (BIS), there are more than US$ 5 trillion in forex transactions that have been traded globally. From here, it is not surprising that we conclude that forex itself is one of the largest markets in the world. After learning about ICDX products, you can determine what products you want to invest in. Don't forget to fill out the Trader Assessment so you can consult directly with expert traders with GIC!

How to Become Part of ICDX?

Reported from the official ICDX website itself, for those of you who want to trade GOFX, you can follow the steps below:
  1. Contact your chosen ICDX member futures broker who has facilitated the opening of your own GOFX trading account. These brokers include Rajawali Kapital Berjangka (ecapital), Agrodana Futures, Sinarmas Futures Prima Tangguharta Futures, and Monex Investindo Futures.
  2. The Futures Broker Representative (WPB) himself will later explain several things that you also need to know, such as the risk profile, type of transaction, and other things.
  3. If you have agreed, you will be asked to complete the documents for opening a trading account (KTP, NPWP, and savings book), as well as other complete documents for the registration requirements.
  4. After that, you will be asked to deposit a margin that corresponds to the minimum amount or the amount that has been mutually agreed upon.
  5. The broker will then provide a username and password to log in to your trading account on the GOFX trading application, namely Meta Trader 5 (MT5).
Meanwhile, for brokers who want to be part of ICDX, they can follow the steps below based on the method explained on their official website.
  1. Prospective members are required to complete the required documents when applying to become ICDX members.
  2. Next, the ICDX Compliance team will conduct an examination of the validity and completeness of the prospective member's documents.
  3. Lalu dilakukan pengecekan fisik ke kantor calon anggota mengenai uji kelayakan dan juga kepatuhan dari direksi perusahaan pialang calon anggota
  4. Then, information will be provided regarding the issuance of an invoice for membership fees which has been sent via email to prospective members.
  5. Next, ICDX will send a copy of the Recommendation Letter to prospective members, send the physical (original) Recommendation Letter to BAPPEBTI, and issue the Recommendation Letter from ICDX.
  6. Next, payment of membership fees is made by prospective members, followed by sending a physical (original) invoice to the prospective member.
  7. Issuance and physical submission of membership certificates from the exchange and clearing director, as well as exchange and clearing certificates for prospective members.
  8. Inatrade Access Rights Request
  9. Uploading of prospective member documents to the official ICDX website
  10. Issuance of certificates by BAPPEBTI for prospective members
  11. Payment and collection of certificates from BAPPEBTI for prospective members
  12. Creating Login Account, Smartrader, EAS (Deposit), EAS (Create Account), and VPN & FTP
  13. Issuance and distribution of notification letters regarding the presence of new broker members to all members of the ICDX-ICH.

What is the Difference between ICDX and JFX

As we all know about the types of derivative futures trading, that Derivative futures trading in Indonesia has known two trading systems, namely the Multilateral trading system that occurs in the stock exchange and also the Bilateral trading system that occurs outside the stock exchange. The Multilateral trading system that is implemented in the stock exchange, the transaction will be carried out with an exchange system (on-exchange) where there are many buyers and sellers who are the same as on the Stock Exchange by trading eight Commodity contracts.

Meanwhile, the bilateral trading system itself is a trading system where transaction activities are carried out outside the exchange where there are 4 groups of products/commodities traded, namely Agri commodities, Currency commodities or commonly called forex, metal commodities such as gold and tin, and FBOT (Foreign Future market) with a trading mechanism that refers more to the Alternative trading system or SPA which is also commonly known as the Over The Counter Market (OTC Market), but there are also some differences.

Both types of trading systems, both bilateral and multilateral, will be organized by the Jakarta Futures Exchange (JFX) or the Jakarta Futures Exchange (BBJ) and the Indonesia Commodity and Derivatives Exchange (BKDI) or it could also be the Indonesia Commodity and Derivatives Exchange (ICDX) which in its operations will be directly supervised by the Bappebti institution. Currently, Indonesia has two futures exchanges, namely the Jakarta Futures Exchange (JFX) or PT Bursa Berjangka Jakarta (BBJ) which has started operating in late 2000 and also the Indonesia Commodity and Derivatives Exchange (ICDX) or PT Bursa Komoditi Derivatif Indonesia (BKDI) has started operating in 2009.
Quoted on the official ICDX page, it has been explained that the mechanism of the futures exchange transaction is carried out by purchasing a standardized contract based on the futures exchange. The agreement between the buyer and the seller will later be bound by a contract even though they do not know who the other party is. At the beginning of this alternative trade, it was served by the Jakarta Futures Exchange (JFX), where JFX was established on November 21, 2000 and was recorded as the first futures exchange in Indonesia, and until 2010, JFX was the only futures exchange in Indonesia, until finally in 2010 a new futures exchange was established which we currently know as the Indonesian Commodity and Derivatives Exchange (ICDX) which was established on March 31, 2010.
 
Because in futures trading carried out in Indonesia itself, although there are 2 organizers, namely JFX and ICDX, each will have a different permit, legality, management, and operational office that has been registered, recognized and supervised by Bappebti. With the existence of JFX and ICDX as the organizer of trading for a futures commodity, it can be an alternative solution for anyone who wants, be it traders, investors, brokers of securities companies, and also brokers to be able to choose which instrument will suit the wishes of each party based on the assessment criteria and also other aspects that are considered to be better or superior and more comfortable in terms of service and convenience in transacting.
 
Then with the existence of JFX and ICDX as the organizer of trading for futures contracts in Indonesia, it is hoped that both will be able to compete professionally in improving services so that they can provide satisfaction to consumers and also players in futures trading in Indonesia. After knowing about ICDX and other related matters, then you don't need to be confused anymore if you want to buy your own ICDX product or how to join ICDX.

angan lupa juga jika kalian telah membaca artikel ini, siapkan diri untuk mengikuti Preliminary Test agar bisa mengukur seberapa jauh dari kemampuan praktik kalian dalam melakukan trading sendiri. Selain itu, pastikan kalian telah memahami dengan benar mengenai perbedaan ICDX dan JFX sendiri agar bisa menentukan mengenai investasi apa yang nantinya akan dilakukan dan diinginkan. Download juga aplikasi GICTrade Mobile Apps yang bisa kalian unduh melalui App Store maupun Play Store sehingga kalian dapat mengikuti   dengan hadiah miliaran rupiah.

Don't forget also if you have read this article, prepare yourself to take the Preliminary Test to measure how far from your practical ability in doing your own trading. In addition, make sure you have properly understood the differences between ICDX and JFX themselves so that you can determine what investments will be made and desired. Also download the GICTrade Mobile Apps application which you can download via the App Store or Play Store so you can participate with prizes of billions of rupiah.