Energy Product Derivatives - Indonesia

Indonesia

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$58.87bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.77% resulting in a projected total amount of US$70.85bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.00 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$26.91tn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 74.15m by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Indonesia is witnessing a significant growth in recent years.

Customer preferences: Customers in Indonesia are increasingly showing interest in Energy Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. With the growing awareness of risk management strategies, investors are turning to derivatives to capitalize on price movements in the energy market.

Trends in the market: One of the key trends in the Energy Product Derivatives market in Indonesia is the rising demand for renewable energy derivatives. As the country aims to reduce its carbon footprint and increase sustainability, there is a growing interest in derivatives linked to renewable energy sources such as solar and wind. This trend is in line with the global shift towards cleaner energy alternatives.

Local special circumstances: Indonesia's geographical location makes it prone to natural disasters, including earthquakes and volcanic eruptions. These environmental risks can impact the energy sector and create volatility in energy prices. As a result, investors in Indonesia are increasingly turning to Energy Product Derivatives to manage and mitigate these risks, making the market more dynamic and responsive to external factors.

Underlying macroeconomic factors: The Indonesian government's push towards energy independence and the development of domestic energy resources is a key driver of the Energy Product Derivatives market. As the country seeks to reduce its reliance on imported energy sources, there is a growing need for risk management tools to navigate the evolving energy landscape. Additionally, Indonesia's strategic location in the Asia-Pacific region positions it as a key player in the global energy market, further fueling the demand for Energy Product Derivatives.

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.