* Eyes doubling of market capitalisation to $300 bln
* Wants foreign resources firms to list local units
* Wants state firms Garuda, Krakatau Steel, others to list
* Plans to re-launch derivatives contracts to improve hedging
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By Tyagita Silka
JAKARTA, July 21 (Reuters) - Indonesia Stock Exchange wants several foreign-owned natural resources firms and state-owned enterprises to list, in a bid to lift market capitalisation and liquidity and woo investors, the exchange head said on Tuesday.
Ito Warsito, who took over as president director earlier this month, said he would encourage U.S. mining giants Freeport McMoRan Copper & Gold Inc. and Newmont Mining Corp to list their Indonesian units, which he estimated would be worth billions of dollars.
"Our objective is to increase market capitalisation, from 1,500 trillion to 3,000 trillion rupiah ($299 billion), (with) the listing of the companies that exploit natural resources in Indonesia, (and the) listing of state-owned companies," Warsito told Reuters in an interview.
"Of course it depends on government support for that because (the exchange) cannot push or make regulation that they have to list. It is the government who has the power."
Indonesia has some of the world's largest deposits of gold, nickel, tin, coal and copper, but foreign involvement in the natural resources sector has become a sensitive political issue, with calls for foreign firms to sell stakes to the government.
Freeport, which operates the huge Grasberg copper and gold mine in Papua, eastern Indonesia, has come under attack in the past, while Newmont was ordered by an arbitration court in March to reduce its stake in an Indonesian unit which was recently valued at $3.52 billion.
In some cases when foreign firms were obliged to divest shares to the government, the finance ministry did not take up the offer, which analysts said was because it lacked the funds. Foreign firms then had to turn to the private sector.
Multicapital, which local media reported is a subsidiary of coal-miner PT Bumi Resources, has formed a joint venture with three local governments to purchase a stake in Newmont's local unit, Newmont Nusa Tenggara. Bumi is controlled by the family of Indonesia's welfare minister Aburizal Bakrie.
But, Warsito said that by listing their Indonesian operations on the exchange, foreign companies may find it easier to meet the requirements to reduce their stakes while increasing local ownership. He said that some institutions and some members of the government support this plan for divestment.
"There are parties in the government that are interested in this solution, but I don't say that all branches of the government agreed on that," he said.
Warsito also said he would push for the government to list more of the state-owned enterprises, including lender Bank Tabungan Negara (BTN), national carrier Garuda Indonesia, Krakatau Steel, oil and gas giant Pertamina's various subsidiaries, and plantations firms.
He said he would also address the concerns of foreign investors over the lack of adequate hedging instruments by re-launching various derivatives contracts, including stock options and futures contracts, and would push for demutualisation of the exchange.
"We already have (had) discussions with several stock exchange members. Perhaps next year we can relaunch the futures contract, stock futures," he said. ($1 = 10,040 rupiah) (Editing by Sara Webb and Marie Maitre)