OJK representative admitted that around 99 coal-based Steam Power Plants (PLTU) would participate in carbon trading on the carbon exchange this year.
Heaptalk, Jakarta — Indonesia’s Financial Services Authority (OJK) affirmed its readiness to oversee the carbon trading process starting in September 2023.
Previously, OJK has issued POJK No.14/2023 concerning Carbon Trading through carbon exchanges as a supporting regulation in implementing carbon trading. This regulation was approved in a consultation meeting with Commission Xl of the DPR. This carbon trading development is expected to achieve the target of the initial implementation of carbon units on the carbon exchange at the end of September.
With the enactment of this regulation, the Chief Executive of Financial Sector Technology Innovation Supervision, Financial Digital Assets, and Crypto Assets at OJK, Hasan Fawzi, aims to minimize multiple interpretations of statutory provisions and possible violations of applicable provisions. Perceiving this sector’s significant matter, He realized that carbon trading in Indonesia could increase the economic value of carbon units generated from efforts to reduce carbon emissions.
Hasan admitted that around 99 coal-based Steam Power Plants (PLTU) would participate in carbon trading this year. According to his statement, this amount equals 86% of the total coal-fired power plants operating in the archipelago. Apart from the power generation sub-sector, other industries, including forestry, plantations, oil and gas, and the public sector, will also be involved in this carbon trading.
As is well known, this financial institution officially issued Financial Services Authority Regulation (POJK) Number 14 of 2023 concerning Carbon Trading and Carbon Exchange in July last August. This policy will regulate general provisions for carbon exchanges, types of carbon units traded, provisions for carbon units that are securities, and procedures for permitting carbon exchange trading.
Cited in Bisnis, Indonesia’s Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, emphasized that the carbon exchange implementation is a government commitment to reduce carbon emissions by up to 30% by 2023. Through this strategic endeavor, Luhut estimates that Indonesia’s carbon trading activities through primary trading between business entities and secondary through the OJK carbon exchange can reach around US$1 billion to US$15 billion annually.
