Containing a potential value of US$193.6 million, the IDX Carbon transaction has reached US$1.8 million in its initial trading.
Heaptalk, Jakarta — The President of the Republic of Indonesia, Joko ‘Jokowi’ Widodo, officially launched the Indonesian Carbon Exchange (IDX Carbon) on Tuesday. (09/26)
In his statement, Jokowi stated, “This endeavor is Indonesia’s real contribution to resolve the climate change crisis, where the proceeds from this trade will be reinvested in efforts to protect the environment, specifically through reducing carbon emissions.”
The Indonesian carbon exchange is claimed to be one of the largest carbon exchanges in the world because of the volume and diversity of units traded and its contribution to reducing national and world carbon emissions. To overcome climate issues, Indonesia aims to reduce greenhouse gas emissions by 31.89% independently and 43.2% through international assistance.
In his further statement, the President of Indonesia explained that the archipelago possesses tremendous potential to implement nature-based solutions as the archipelago can reduce carbon emissions diminishment, with a majority contribution from the natural sector up to 60%. For this reason, Jokowi said that the potential value of carbon trading is estimated to attain US$193.6 million (around Rp3,000 trillion). According to him, this value can be invested in projects to reduce carbon emissions as the most significant effect of rising earth temperatures.
“This potential will become a new opportunity that is sustainable and environmentally friendly, particularly through the implementation of this green economy. For this reason, launching this carbon exchange is a big step for Indonesia to achieve its Nationally Determined Contribution (NDC) target.” The seventh President of the archipelago affirmed.
Gaining US$1.8 million in transactions in IDX Carbon’s early trading
As the carbon exchange organizer, Indonesia’s IDX recorded that the total carbon trading volume reached 459,953 units, totaling 27 transactions. With the total carbon units traded, the initial carbon exchange trading transaction value has reached US$1.8 million, approximately (Rp29.2 billion).
According to IDX Development Director Jeffrey Hendrik, in the initial carbon exchange trading (09/26), around 17 transactions were recorded in the regular market, 3 in the negotiation market, and seven in the auction market. Around 15 service users registered as buyers and one as sellers in this transaction.
During the initial carbon exchange trading, several providers of carbon units from PT Pertamina New and Renewable Energy (PNRE) have been traded, including the Lahendong unit 5 and 6 projects belonging to PT Pertamina Geothermal Tbk. This project has contributed to reducing carbon by 202,989 tons.
Meanwhile, several companies are also involved as carbon unit buyers, spanning Bank BCA, CIMB Niaga, DBS Indonesia, Bank Mandiri, BNI Sekuritas, BRI Danareksa Sekuritas, CarbonX Bumi Harmoni, MMS Group Indonesia, Multi Optimal Research and Education, and Pamapersada Nusantara, as well as Pertamina’s subsidiaries, such as Pelita Air Service, Pertamina Hulu Energi, and Pertamina Patra Niaga.
