Heaptalk, Jakarta — The Chief of Presidential Staff (KSP) Moeldoko stated that carbon trading in Indonesia must run optimally before the era of President Joko ‘Jokowi’ Widodo ends in October 2024,
“Carbon trading is the President’s program. For this reason, it is important to accelerate while still paying attention to the President’s direction, namely forming a carbon economic ecosystem that has integrity, inclusion, transparency, and justice,” said Moeldoko when met by journalists at the PEVS press conference in Jakarta, Monday (04/22).
On this occasion, Moeldoko said that the Indonesian government is continuing to work hard to reduce deforestation, which has shown significant results. Quoting data from the Ministry of Environment and Forestry (KLHK), he said that the deforestation figure in Indonesia in 2022 will reach 40,400 hectares, down from 101,400 hectares in 2021. This figure is the lowest in the last 20 years. He voiced, “These results show that the government’s effort to protect forests and reduce deforestation are starting to succeed.”
Furthermore, he conveyed that reducing deforestation in Indonesia would positively impact carbon trading. This is due to the lower price of carbon credits, their abundant availability, and the increased confidence of market players in carbon trading. “In this way, Indonesia’s opportunity to become a major player in global carbon trading is getting bigger,” said Moeldoko.
The 2013-2015 TNI Commander stated that carbon trading is important for reducing the risk of climate change and improving the national economy. He said the potential for carbon trading is not open, not only limited to domestic carbon trading but also abroad. “For this reason, it is necessary to optimize trading on the carbon exchange,” explained Moeldoko.
The effort to maximize carbon trading in Indonesia faces several challenges. Among them are several supporting regulations that have not yet been completed, such as regulations related to foreign carbon trading and carbon taxes. He stressed, “KSP will invite the relevant ministries/institutions to finalize this matter.
Moeldoko observed that the achievement of trading value on the Indonesian carbon exchange was still far from expectations. Based on a report from the Financial Services Authority (OJK), he explained that since the carbon exchange was officially launched by President Joko Widodo on September 29, 2023, until November 2023, the carbon trading value was Rp30.7 billion with a trading volume of 490,716 tons of carbon dioxide equivalent (CO2e). “We have to work more to improve it. “KSP and Financial Services Authority (OJK) are ready to oversee it,” he concluded.
