INDONESIAN COMMODITY EXCHANGE MAY EXPAND The Indonesian Commodity Exchange is likely to start trading in at least one new commodity, and possibly two, during calendar 1987, exchange chairman Paian Nainggolan said. He told Reuters in a telephone interview that trading in palm oil, sawn timber, pepper or tobacco was being considered. Trading in either crude palm oil (CPO) or refined palm oil may also be introduced. But he said the question was still being considered by Trade Minister Rachmat Saleh and no decision on when to go ahead had been made. The fledgling exchange currently trades coffee and rubber physicals on an open outcry system four days a week. "Several factors make us move cautiously," Nainggolan said. "We want to move slowly and safely so that we do not make a mistake and undermine confidence in the exchange." Physical rubber trading was launched in 1985, with coffee added in January 1986. Rubber contracts are traded FOB, up to five months forward. Robusta coffee grades four and five are traded for prompt delivery and up to five months forward, exchange officials said. The trade ministry and exchange board are considering the introduction of futures trading later for rubber, but one official said a feasibility study was needed first. No decisions are likely until after Indonesia's elections on April 23, traders said. Trade Minister Saleh said on Monday that Indonesia, as the world's second largest producer of natural rubber, should expand its rubber marketing effort and he hoped development of the exchange would help this. Nainggolan said that the exchange was trying to boost overseas interest by building up contacts with end-users. He said teams had already been to South Korea and Taiwan to encourage direct use of the exchange, while a delegation would also visit Europe, Mexico and some Latin American states to encourage participation. Officials say the infant exchange has made a good start although trading in coffee has been disappointing. Transactions in rubber between the start of trading in April 1985 and December 1986 totalled 9,595 tonnes, worth 6.9 mln dlrs FOB, plus 184.3 mln rupiah for rubber delivered locally, the latest exchange report said. Trading in coffee in calendar 1986 amounted to only 1,905 tonnes in 381 lots, valued at 6.87 billion rupiah. Total membership of the exchange is now nine brokers and 44 traders.