Indonesia is world's top producer of several important commodity products, and commodity futures exchange plays critical to the development of the economy. Commodity futures exchange give benefits to the economy as facilities for transfer of trading risk through hedging, as a place for transparent price discovery and as alternative investment for speculator who are willing to take the risk for gaining profit from the price fluctuation.

Bursa berjangka Jakarta or Jakarta Futures Exchange (JFX) has been in operation for more than ten years since year 2000. However, trading transaction volume for commodity futures is still very small , causing inability of JFX to serves its market exchange main purposes as price discoverer ad risk transfer. Working together with the GFP members, JFX perform assessment of its current business strategy, determine marketing strategy and develop strategic marketing plan to overcome the above problem.

As the first step, project team performed assessment of JFX business strategy. The result is recommendation for JFX to continue its current turn-around strategy of enforcing regulation for its brokers to perform multilateral transaction 5% of the total over-the-counter bilateral transaction, increasing multilateral transaction volume and liquidity, develop new products and new market and build JFX brand image for its multilateral commodity futures exchanges.

The team also recommendens JFX to perform the following business strategy : establish marketing function for commodity futures, focus on customers in market segment that are required to create a liquid commodity exchange market and setup organization objective to generate suffient commodity futures trading transaction.

The next step is developing JFX marketing strategy and plan that include the following activities : perform customer segmentation, perform market research, select target market, choosenpositioning, formulate marketing objectives, formulate marketing strategy and develop strategic marketing plan.

The main value gap that the project team indentifies from the market survey result is customer "lack of knowledge" about JFX multilateral transaction. This has caused potential customer to not started doing multilateral transaction at JFX although the percentage overall awareness on JFX is 67%. Regarding factors that the potential customer perceived as important to start doing transaction in JFX, the following are the top three factors: security/protection for customer, potential profit and convenience of doing transaction.

Based on the product atractiveness and company strengh factors, the team recommends JFX to focus on the following products : good, dold foreign exchange index, coffee, olein and crude palm oil. Using the same analysis, the recommended the market segments that JFK shall focus its marketing effort are its current over the counter bilateral " sistem perdagangan alternatif (SPA)" customer and physical commodity players.





Research Location : Jakarta Futures Exchange (JFX)



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