Indonesian government established tin commodity exchange as a reference for world’s tin price. Currently, there are three commodity exchanges in the world. This research aims to analyze relationship of tin commodity exchanges between London Metal Exchange (LME), Kuala Lumpur Tin Market (KLTM) and Indonesian Tin Exchange (INATIN). Daily data were obtained since August 23rd, 2013 to December 31st, 2015. We utilized Granger Causality and verified through interviews with tin’s experts. The result indicates that price alterations in INATIN influence the price in other commodity exchanges and not vice versa. The experts consider it yet to be optimized in influencing other commodity exchanges, especially with regard to Alternative Delivery Procedure system in Indonesia Commodity and Derivatives Exchanges (ICDX).
Keywords: Commodities Exchanges; Granger Causality; Tin