Heaptalk, Jakarta — The Ministry of Environment/Environmental Control Agency of the Republic of Indonesia (KLH/BPLH), the Financial Services Authority (OJK), and the Indonesia Stock Exchange (IDX) officially launched the inaugural international trading of Indonesian Carbon Units through IDXCarbon at the IDX Main Hall. (01/20.
IDXCarbon achieved a trading volume of 41,822 tCO2e in the initial international trading recording at 09.19 WIB and recorded nine authorized trades, nine buyers, and five total authorized projects. Also, In the first launch, the carbon exchange price at the Indonesia Technology Based Solution (IDTBS) unit was Rp96,000, while at the IDTBS Renewable Energy (IDTBS-RE) unit priced at Rp144,000.
The ceremony was officiated by Minister of Environment Hanif Faisol Nurofiq, Minister of Forestry Raja Juli Antoni, Chairman of OJK Mahendra Siregar, Chief Executive of OJK for Capital Market, Derivatives, and Carbon Exchange Supervision Inarno Djajadi, Deputy Minister of Environment Diaz Hendropriyono, Head of Fiscal Policy Agency Febrio Kacaribu, and IDX President Director Iman Rachman. The event was attended by various stakeholders, including representatives from friendly nations, members of the House of Representatives Commission XII, leaders of ministries and agencies, business sectors, and associations.
This launch is a testament to Indonesia’s commitment following COP 29 and showcases the country’s readiness to implement Article 6 of the Paris Agreement. The event also aims to accelerate the submission of Indonesia’s 2nd Nationally Determined Contribution (NDC) by February 10, 2025.
To foster a transparent, inclusive, and fair carbon ecosystem, the Indonesian government has strengthened key elements within this ecosystem, including the National Registry System (SRN), Measurement, Reporting, and Verification (MRV), Greenhouse Gas Emission Reduction Certificates (SPE-GRK), and the Authorization and Corresponding Adjustment (CA) for international carbon trading.
Minister Hanif Faisol Nurofiq emphasized that these strengthened elements assure the integrity of Indonesia’s SPEs. Indonesia has authorized 1.78 million tons of CO2e for international carbon trading, derived from energy sector projects such as operating new natural gas and hydroelectric power plants.
The SRN, managed by KLH/BPLH, interacts seamlessly with IDXCarbon’s trading system under OJK’s supervision. Minister Hanif assured that all certificates issued for international carbon trading are safeguarded against double accounting, double payment, and double claims.
OJK Chairman Mahendra Siregar praised the rapid and coordinated efforts of related ministries and agencies in facilitating the launch of international carbon trading, highlighting Indonesia’s strong commitment to playing a significant role in the global carbon market. He commended the leadership of President Prabowo Subianto’s administration for achieving this milestone within three months, which could bolster national economic growth.
Since its launch on September 26, 2023, IDXCarbon has shown positive developments. By the end of 2024, the number of registered participants had grown from 16 to 100. Cumulatively, IDXCarbon has traded over one million tons of carbon units.
IDX President Director Iman Rachman attributed this success to IDXCarbon’s robust trading system, integrating global best practices from emission allowance and carbon credit markets. Today’s inaugural international trading demonstrates IDXCarbon’s preparedness to support domestic and international carbon trading.
The success of international carbon trading hinges on collaboration among countries, private sectors, financial institutions, philanthropy, banking, and other stakeholders, highlighting the collective nature of carbon trading efforts.
