Regulation of the Commodity Futures Trading Regulatory Agency Number 6 of 2024 Regarding Amendments to Regulation Number 11 of 2019 on Technical Guidelines for Pure Block Tin Trading Through the Tin Exchange

REGULATION OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER 6 OF 2024 REGARDING AMENDMENTS TO THE REGULATION OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER 11 OF 2019 ON TECHNICAL GUIDELINES FOR THE IMPLEMENTATION OF PURE BLOCK TIN TRADE THROUGH THE TIN EXCHANGE

BY THE GRACE OF GOD THE ALMIGHTY, HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY,

Considering: a. that in order to realize the orderly, fair, efficient, and effective implementation of Pure Block Tin trade through the Tin Exchange, within an atmosphere of healthy competition, and to provide legal certainty regarding the process of Pure Block Tin trade through the Tin Exchange, it is necessary to adjust the regulations governing the implementation of Pure Block Tin trade through the Tin Exchange; b. that based on the considerations referred to in letter a, it is necessary to establish a Regulation of the Commodity Futures Trading Regulatory Agency regarding Amendments to the Regulation of the Commodity Futures Trading Regulatory Agency Number 11 of 2019 on Technical Guidelines for the Implementation of Pure Block Tin Trade Through the Tin Exchange;

Recalling:

1. Law Number 32 of 1997 on Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 1997 Number 93, Supplement to the State Gazette of the Republic of Indonesia Number 3720) as amended by Law Number 10 of 2011 on Amendments to Law Number 32 of 1997 on Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 2011 Number 79, Supplement to the State Gazette of the Republic of Indonesia Number 5232);
2. Government Regulation Number 49 of 2014 on the Implementation of Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 2014 Number 143, Supplement to the State Gazette of the Republic of Indonesia Number 5548);
3. Presidential Regulation Number 68 of 2019 on the Organization of State Ministries (State Gazette of the Republic of Indonesia Year 2019 Number 203) as amended by Presidential Regulation Number 32 of 2021 on Amendments to Presidential Regulation Number 68 of 2019 on the Organization of State Ministries (State Gazette of the Republic of Indonesia Year 2021 Number 106);
4. Presidential Regulation Number 11 of 2022 on the Ministry of Trade (State Gazette of the Republic of Indonesia Year 2022 Number 19);
5. Minister of Trade Regulation Number 29 of 2022 on the Organization and Work Structure of the Ministry of Trade (State News of the Republic of Indonesia Year 2022 Number 492);
6. Minister of Trade Regulation Number 23 of 2023 on Export Policy and Regulation (State News of the Republic of Indonesia Year 2023 Number 527);
7. Commodity Futures Trading Regulatory Agency Regulation Number 2 of 2019 on the Implementation of Physical Commodity Markets at Futures Exchanges as amended by Commodity Futures Trading Regulatory Agency Regulation Number 10 of 2019;
8. Commodity Futures Trading Regulatory Agency Regulation Number 11 of 2019 on Technical Guidelines for the Implementation of Pure Block Tin Trade Through the Tin Exchange;

DECIDES:

To establish: A REGULATION OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY REGARDING AMENDMENTS TO THE REGULATION OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER 11 OF 2019 ON TECHNICAL GUIDELINES FOR THE IMPLEMENTATION OF PURE BLOCK TIN TRADE THROUGH THE TIN EXCHANGE.

Article I Several provisions in the Commodity Futures Trading Regulatory Agency Regulation Number 11 of 2019 on Technical Guidelines for the Implementation of Pure Block Tin Trade Through the Tin Exchange are amended as follows:

1. The provisions of item 6 and item 7 of Article 1 are amended to read as follows:

Article 1 In this Commodity Futures Trading Regulatory Agency Regulation, the following terms are defined:

1. Commodity Futures Trading Regulatory Agency, hereinafter referred to as Bappebti, is a government agency whose main task is to conduct supervision, regulation, development, and oversight of Futures Trading.

2. Tin Exchange is an international and domestic tin market in Indonesia that is an organized market and part of the Futures Exchange.

3. Futures Exchange is a business entity that organizes and provides systems and/or facilities for commodity trading activities based on Futures Contracts, Sharia Derivatives Contracts, and/or other Derivative Contracts.

4. Pure Block Tin is Pure Tin with a Stannum (Sn) content of at least 99.9% which is the result of processing and refining Tin Ore by a Smelter.

5. Pure Block Tin Contract is a standard contract form for selling or buying Pure Block Tin at the Tin Exchange.

6. Tin Exchange Seller Participant, hereinafter referred to as Seller Participant, is a business entity that has met the requirements set by the Futures Exchange to conduct transactions for the sale of Pure Block Tin for export purposes or for use domestically through the Tin Exchange.

7. Tin Exchange Buyer Participant, hereinafter referred to as Buyer Participant, is a party that has met the requirements set by the Futures Exchange to conduct transactions for the purchase of Pure Block Tin for export purposes or for use domestically through the Tin Exchange.

8. Tin Clearing Agency is a part of the Clearing House that organizes systems and/or facilities for the execution of clearing and/or guaranteeing the settlement of Pure Block Tin Trade transactions for export or domestic purposes at the Tin Exchange.

9. Storage Facility Manager is a party that manages the storage facility for Pure Block Tin recommended by the Futures Exchange and cooperates with the Clearing House to conduct storage, maintenance, supervision, and/or delivery of Pure Block Tin to Buyer Participants in accordance with the Pure Block Tin Contract, which has obtained approval from the Head of Bappebti.

10. Tin Storage Certificate or BST is a document issued by the Storage Facility Manager as proof of ownership of Pure Block Tin stored by the Seller Participant.

11. Tin Transaction Guarantee is a sum of money or securities that must be placed by the Buyer Participant or Seller Participant at the Tin Clearing Agency as a guarantee for the implementation of Pure Block Tin transactions at the Tin Exchange.

12. Tin Purchase Certificate from the Exchange or BPTB is a document issued by the Tin Exchange as proof of the purchase of Pure Block Tin.

13. Delivery Order (DO) is a Pure Block Tin Order Certificate issued by the Seller Participant to the Buyer Participant for the trade of Pure Block Tin to be used domestically.

14. Clearing Statement is a financial position report of the Seller Participant or Buyer Participant at the Tin Clearing Agency.

15. Surveyor is a survey company authorized to conduct verification or technical tracing of tin exports.

16. The provision of paragraph (4) of Article 2 is amended to read as follows:

Article 2 (1) Pure Block Tin for export purposes or sold domestically must be traded through the Tin Exchange. (2) Pure Block Tin as referred to in paragraph (1) has the following technical requirements: a. has Tariff Position/HS Code 8001.10.00.00; b. has a Stannum (Sn) content of at least 99.9% which is the result of processing and refining Tin Ore by a Smelter; c. has a maximum total content of other impurity elements of 0.1% with individual levels as follows:

1. Iron (Fe) ≤ 0.005% (50 ppm);
2. Aluminum (Al) ≤ 0.001% (10 ppm);
3. Arsenic (As) ≤ 0.03% (300 ppm);
4. Bismuth (Bi) ≤ 0.015% (150 ppm);
5. Cadmium (Cd) ≤ 0.001% (10 ppm);
6. Copper (Cu) ≤ 0.015% (150 ppm);
7. Lead (Pb) ≤ 0.030% (300 ppm);
8. Antimony (Sb) ≤ 0.015% (150 ppm); and/or
9. Zinc (Zn) ≤ 0.001% (10 ppm). d. has the following dimensions:
10. top length 410 - 540 mm;
11. bottom length 270 - 390 mm;
12. top width 100 - 160 mm;
13. bottom width 88 – 125 mm; and
14. height 64 – 125 mm. e. has a weight of 1 (one) bar of Pure Block Tin of 25 Kg with a tolerance of ± 2 Kg; and f. packaging of a maximum of 40 bars with a total weight of 1,000 Kg ± 20 Kg per package. (3) The provisions as referred to in paragraph (2) letter f are excluded for Pure Block Tin used or sold domestically. (4) Deleted. (5) Pure Block Tin Contracts traded at the Tin Exchange for export purposes or for use domestically include: a. Pure Block Tin Contract 99.9% Sn, ≤ 0.005% Fe, and 0.030% Pb; b. Pure Block Tin Contract 99.9% Sn, ≤ 0.005% Fe, and 0.020% Pb; c. Pure Block Tin Contract 99.9% Sn, ≤ 0.005% Fe, and 0.010% Pb; d. Pure Block Tin Contract 99.9% Sn, ≤ 0.005% Fe, and 0.005% Pb; and e. Pure Block Tin Contract 99.99% Sn.

3. The provision of paragraph (1) letter a of Article 4 is amended to read as follows:

Article 4 (1) In the implementation of Pure Block Tin trade through the Tin Exchange, the Futures Exchange as referred to in Article 3 paragraph (1) has the right to: a. accept or reject Seller Participants or Buyer Participants who conduct Pure Block Tin trade through the Tin Exchange in accordance with the requirements and procedures for acceptance of Seller Participant and Buyer Participant membership; b. appoint Storage Facility Managers who will store the goods owned by Seller Participants and issue Tin Storage Certificates or BST; c. propose Pure Block Tin Contracts traded through the Tin Exchange to obtain approval from Bappebti; d. form a Tin Product Committee; and e. determine storage locations and loading ports for Tin. (2) In the implementation of Pure Block Tin trade through the Tin Exchange, the Futures Exchange as referred to in Article 3 paragraph (1) is obligated to: a. provide a trusted, open online trading system connected to the Tin Clearing Agency and inspected by Bappebti; b. issue Tin Purchase Certificates from the Exchange or BPTB; and c. provide dispute resolution facilities. (3) The requirements and procedures for accepting Seller Participants or Buyer Participants as referred to in paragraph (1) letter a are regulated in the regulations and bylaws of the Tin Exchange.

4. The provision of paragraph (1) letter a of Article 5 is amended to read as follows:

Article 5 (1) In the implementation of Pure Block Tin trade through the Tin Exchange, the Clearing House has the right to: a. accept or reject Seller Participants or Buyer Participants at the Tin Clearing Agency who conduct Pure Block Tin trade through the Tin Exchange in accordance with the requirements and procedures for acceptance of Seller Participant and Buyer Participant membership; and b. request the Storage Facility Manager to release Pure Block Tin from the Storage Facility after meeting the requirements. (2) In the implementation of Pure Block Tin trade through the Tin Exchange, the Clearing House is obligated to: a. provide a trusted, open electronic system connected to the Tin Exchange and Storage Facility Managers, which has been inspected by Bappebti; b. cooperate with Storage Facility Managers; and c. cooperate with Surveyors appointed by the Director General of Foreign Trade on behalf of the Minister of Trade. (3) The requirements and procedures for accepting Seller Participants or Buyer Participants at the Tin Clearing Agency as referred to in paragraph (1) letter a are regulated in the regulations and bylaws of the Tin Clearing Agency.

5. The provision of paragraph (1) of Article 6 is amended to read as follows:

Article 6 (1) Seller Participants and Buyer Participants must have membership as Seller Participants or Buyer Participants of the Tin Exchange and the Tin Clearing Agency. (2) Seller Participants as referred to in paragraph (1) must meet special requirements as Registered Exporters (ET) of Pure Block Tin and possess a valid Export Approval (PE) issued by the Ministry of Trade. (3) Buyer Participants as referred to in paragraph (1) who purchase Pure Block Tin for export purposes are users of Pure Block Tin or trading companies using Pure Block Tin. (4) Buyer Participants as referred to in paragraph (1) who purchase Pure Block Tin for sale domestically are business entities or individuals using Pure Block Tin.

Article II This Regulation shall come into force on the date of establishment.

Established in Jakarta On July 2024

ACTING HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY,

Signed, KASAN

A copy in accordance with the original COMMODITY FUTURES TRADING REGULATORY AGENCY, Head of the Legislation Bureau