Indonesia Launches Carbon Trading Exchange

Image: IDX

Indonesian President Joko Widodo launched his country’s first carbon exchange at a ceremony at the Indonesia Stock Exchange (IDX), the new carbon trading platform will be known as IDXCarbon.

Widodo said the exchange would create new economic opportunities that would be sustainable and environmentally friendly highlighting that Indonesia offered great potential for carbon reduction, especially in nature-based solutions, and its carbon market could grow to 3,000 trillion rupiah.

“Concrete steps are needed, and the carbon exchange that we launch today can be a big step for Indonesia to achieve its emissions goal,” President Widodo added.

The IDXCarbon operator said the exchange will provide a transparent, orderly, fair, and efficient trading system. Apart from providing transparency in prices, IDXCarbon trading will also provide an easy and simple transaction mechanism. Currently, there are 4  IDXCarbon trading mechanisms, namely Auction Market, Regular Market, Negotiated Market, and Marketplace.

IDXCarbon is connected to the National Registry System – Climate Change Control (SRN-PPI) belonging to the Ministry of Environment and Forestry (KLHK), making it easier to administer the transfer of carbon units and avoid double counting.

Companies who have an obligation and/or commitment to voluntarily reduce greenhouse gas emissions, can become IDXCarbon’s Users and buy available carbon units.

In today’s first carbon trades, IDXCarbon recorded carbon trading of 459.953 tons of Carbon Units and there were 27 transactions by midday Indonesian time. A majority of the credits were from geothermal projects in North Sulawesi, owned by PT Pertamina Geothermal Energy.

“IDXCarbon is an important milestone for Indonesia’s decarbonisation commitment to achieve net zero emissions in 2060 or sooner. IDXCarbon strives for transparency, reliability, and security in providing the best solution for carbon trading in Indonesia and creating fair, orderly, and efficient trading. By providing a platform that prioritises seamless user experience, we envisage that IDXCarbon can provide convenience for all entities in obtaining benefits from carbon trading,” said Iman Rachman, President Director of IDX as operator of the Indonesia Carbon Exchange.