Bappebti Introduces Sharia Based Physical Commodity Market

In an effort to bolster the liquidity of commodity futures trading transactions (“ Transactions ”), particularly through physical, sharia-based markets, the Commodity Futures Trading Regulatory Agency (Badan Pengawas Perdagangan Berjangka Komoditi– “ Bappebti ”) has decided to issue Regulation No. 5 of 2024 (“ Regulation 5/2024 ”) on the Organization of Physical Commodity Markets Based on Sharia Principles (“ Physical Sharia Markets ”) at Futures Exchanges (“ Exchanges ”), which has been in force since 28 March 2024. [1] In this regard, it should be noted that any Bappebti regulatory frameworks that address the organization of the physical commodity market at Exchanges will remain applicable unless a given area is specifically addressed under the new framework of Regulation 5/2024. [2]