Indonesia’s Financial Services Authority (OJK). (Photo: iStock)
Indonesia’s Financial Services Authority (OJK) is optimistic that carbon exchange will continue to grow in 2024. As of Nov 30 in 2023, the trading volume on IDX Carbon reached 494,000 tons of CO2e, with a transaction value of IDR 30.91 billion.
"One of the reasons is the increasing number of carbon units transactions, from the carbon credit scheme or the Indonesian GHG Emissions Reduction Certificate (SPEGRK) and the potential increase from the allowance scheme Emissions Upper Limit Technical Approval (PT BAE-PU)," said Inarno Djajadi, the carbon exchange supervisor, during a press conference on Jan 9.
In addition, the growth must be supported by all sectors of industries to meet the net zero target. "Currently. more and more industries have net zero targets, from transportation, banking, and mining," Inarno said.
Foreign trade is also one of the reasons that Inarno hopes could be realized soon. He added, "Considering Indonesia's potential as a country with carbon reserve from forestry and marine sectors."
Another factor is the implementation of carbon tax. According to Inarno, a carbon tax could support the entire carbon trading system. On the other hand, he said that OJK has coordinated with the Ministry of Energy and Mineral Resources (EMR) and the Ministry of Environment and Forestry.
"EMR ministry publishes while the environment ministry regulates SRN PPI (National Registration System of Climate Change Control), where each trade of carbon unit has to go through its system," Inarno said,
OJK hopes that the integration between SRN PPI and the EMR ministry's system, APPLE-GATRIK (Electrical Emissions Calculation and Report Application), can be realized soon.