POJK 16/2026 Regulates a New Framework for the Operation of the Mineral and Strategic Commodities Exchange

Introduction

On 17 September 2026, the Financial Services Authority issued Financial Services Authority Regulation Number 16 of 2026 on the Operation of the Mineral and Strategic Commodities Exchange (“POJK 16/2026”), which took effect on 1 January 2027. POJK 16/2026 constitutes an implementing regulation of Article 132A paragraph (3) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, as amended by Law Number 4 of 2026 (“P2SK Law”), and regulates the framework for the operation of the Mineral and Strategic Commodities Exchange (“BMKS”) as an organized and integrated market system for trading Indonesian minerals and strategic commodities, including their derivative products. In addition, POJK 16/2026 regulates the funding ecosystem, digital-based financial instruments, price and quality formation mechanisms, transaction settlement, and risk management in the operation of the BMKS.

POJK 16/2026 is also intended to establish an Indonesian Reference Price for minerals and strategic commodities, support national downstreaming and industrialization, enhance national economic competitiveness and resilience, maintain market integrity, and optimize the added value of Indonesia’s natural resources. POJK 16/2026 provides the basis for establishing a transparent and supervised Indonesian Reference Price, while also strengthening Indonesia’s position in the trading of minerals and strategic commodities. These provisions focus on transactions and market infrastructure through the BMKS without diminishing the authority of other ministries or institutions, including in relation to mining licensing and export-import matters.

Key Provisions

• Structure of BMKS Operators and BMKS Phasing

Article 2 provides that the operation of the BMKS involves the Exchange, Clearing Institution (LK), Electronic Custodian Institution (LKE), Exchange Members, Warehouse Operators, Conformity Assessment Institutions (LPK), and supporting professions. Exchange Members consist of Service Users, Trading Intermediaries, and other parties in accordance with the provisions of laws and regulations. The Exchange, LK, LKE, and Trading Intermediaries are supervised by the OJK, while Service Users, Warehouse Operators, and LPKs are supervised by the Exchange. Supporting professions must be registered with the OJK in order to provide services in the BMKS sector. The operation of the BMKS also integrates the functions of trading, clearing, transaction guarantee and settlement, custody and management of Electronic Proof of Ownership, risk management, price and quality mechanisms, Digital-Based Financial Instruments, the funding ecosystem, and other supporting infrastructure.

Furthermore, Article 4 provides that the operation of the BMKS shall be conducted in stages by taking into account the readiness of institutions, market infrastructure, information technology systems, and market participants. Such stages comprise the establishment and preparation for the operation of the BMKS, the operation of trading activities, the development of BMKS products and services, and the development of the BMKS ecosystem.

• Capital and Institutional Requirements for the Exchange, LK, and LKE

• Functions and Obligations of the Exchange

Article 5 provides that the Exchange shall have the following functions:

• • conducting the trading of Strategic Minerals and Strategic Commodities;

  • operating the BMKS trading system;

  • establishing Exchange Regulations;

  • supervising trading, ensuring the availability of physical and warehousing data and information; and

  • carrying out other functions stipulated by the OJK.

The Exchange is also required to implement governance and risk management, and to have compliance, internal audit, and market surveillance functions, reliable and secure systems, a business continuity plan, and mechanisms for the protection of Service Users. The market surveillance function must be independent and supported by adequate information technology systems to monitor trading, detect unusual transactions, and continuously analyze trading activities.

• Electronic Proof of Ownership and the Process of Becoming "Tradable"

Strategic Minerals and Strategic Commodities may only be traded through the BMKS after obtaining tradable status from an LPK, as stipulated in Article 50. Such status is granted based on quality inspection, quantity verification, storage in a Warehouse approved by the Exchange, fulfillment of administrative requirements, and other requirements under the Exchange Regulations. Once these requirements have been fulfilled, Article 51 provides that the LKE shall issue Electronic Proof of Ownership.

• Establishment of the Indonesian Reference Price

Articles 53 through 57 provide that BMKS transaction prices shall be established based on orderly, fair, transparent, and efficient market mechanisms and may be used as the Indonesian Reference Price. The Exchange is required to prepare a methodology for establishing the Indonesian Reference Price based on fair, transparent, and high-integrity transactions, subject to the OJK’s approval, and to conduct periodic evaluations. The Indonesian Reference Price must be published transparently, and the OJK may order adjustments to the methodology where necessary to maintain market integrity. In addition, Article 58 requires each trading product to have clear contract specifications, covering at least the underlying, quality, trading unit, settlement mechanism, and physical delivery, where applicable.

• Transaction Settlement and Market Supervision

BMKS transaction settlement shall be conducted through the LK based on the principles of legal certainty, security, and efficiency. The LK must ensure that transactions are settled in a timely, secure, and efficient manner and must have mechanisms for handling settlement failures as stipulated in Articles 60–62. Transactions that have been settled in accordance with the LK Regulations shall be binding on the parties and constitute the basis for the fulfillment of the parties’ rights and obligations.

To maintain market integrity, Articles 63–67 require the Exchange to continuously supervise all transactions, including detecting, preventing, and addressing market manipulation and irregular trading practices. Each party is prohibited from creating trading conditions, prices, or transaction volumes that are fictitious, misleading, or do not reflect fair market mechanisms. The Exchange must also monitor trading positions to identify position concentrations and risks that may disrupt market integrity. In circumstances where the market is disorderly or potentially threatens market integrity, the Exchange must take action in accordance with the Exchange Regulations, while the OJK is authorized to order the temporary suspension or restriction of trading, adjustment of trading parameters, and/or other necessary measures as referred to in Articles 68–70.

• Risk Management and Protection of Service Users

All BMKS operators are required to implement effective, integrated, and continuous risk management, including the obligation to have a business continuity plan and a disaster recovery center as stipulated in Article 77. From the consumer protection perspective, Article 83 requires a Service User protection policy covering the provision of accurate and non-misleading information, fair treatment, data protection, complaint handling, and dispute resolution. In addition, Articles 87 and 88 require BMKS operators, together with their directors, commissioners, and employees, to have a conflict-of-interest policy and maintain independence in the performance of their duties.

• Product Development: Derivatives and Digital-Based Financial Instruments

This POJK also provides room for product innovation. Article 91 allows the Exchange to organize the trading of Digital-Based Financial Instruments representing rights to minerals and strategic commodities, provided that they are supported by verifiable underlying assets. Article 92 also opens opportunities for Derivatives Trading involving minerals and strategic commodities, provided that it is supported by adequate risk management, clearing mechanisms, transaction settlement, supervision, and contractual arrangements, in line with the General Elucidation, which confirms that derivative transactions may be settled in cash and/or through physical delivery in accordance with the characteristics of the relevant contract.

• OJK Supervisory Authority

As stipulated in Articles 96 through 99, the OJK has broad authority to regulate and supervise the operation of the BMKS, including requesting data, documents, and information, and accessing the systems of the Exchange, LK, and LKE. In circumstances that may disrupt market integrity or financial system stability, the OJK may order BMKS operators to take specific actions.

• Administrative Sanctions

Almost every Chapter of POJK 16/2026 is supplemented by separate provisions on administrative sanctions (including Articles 39, 47, 71, 81, 89, 95, 100, and 107), which apply progressively to the Exchange, LK, LKE, Warehouse Operators, LPKs, Trading Intermediaries, and other parties that violate specific obligations.

The forms of sanctions that may be imposed include:

1. 1. written warning;

   2. administrative fine;

   3. restriction of business activities;

   4. suspension of business activities;

   5. revocation of business license;

   6. revocation or cancellation of approval;

   7. cancellation of registration; and

   8. revocation of an individual license.

These administrative sanctions may be imposed without a prior written warning, and their imposition does not preclude the possibility of civil liability or criminal sanctions under other laws and regulations, as stipulated in Article 105.

Closing

POJK 16/2026 provides a comprehensive framework for the operation of the BMKS, ranging from institutional structure, requirements and functions of operators, trading mechanisms and establishment of the Indonesian Reference Price, to transaction settlement, market supervision, risk management, and protection of Service Users. The regulation also provides room for product development, including derivatives and Digital-Based Financial Instruments, while continuing to emphasize transparency, market integrity, and risk management.

With POJK 16/2026 coming into force on 1 January 2027, BMKS operators and participants need to ensure their institutional, capital, infrastructure, information technology system, governance, compliance, and risk management readiness in accordance with the applicable provisions. At the same time, the implementation of the BMKS will be carried out in stages by taking into account the readiness of the ecosystem and market participants, such that the effectiveness of its operation will depend on the readiness of all parties involved in building an orderly, transparent, and high-integrity market for minerals and strategic commodities.