Jakarta, January 20, 2025 – The Ministry of Environment/Environmental Management Agency of the Republic of Indonesia (KLH/BPLH), the Financial Services Authority (OJK), and Indonesia Stock Exchange (IDX) officially inaugurated the First International Trade of Indonesian Carbon Units through the Indonesia Carbon Exchange (IDXCarbon) at the IDX Main Hall on Monday (20/1). This inauguration marks a significant milestone in the implementation of carbon trading in Indonesia.
The inauguration was officiated by the Minister of Environment Hanif Faisol Nurofiq, the Minister of Forestry Raja Juli Antoni, the Chairman of OJK’s Board of Commissioners Mahendra Siregar, OJK’s Chief Executive of Capital Market, Derivative Finance, and Carbon Exchange Supervision Inarno Djajadi, Deputy Minister of Environment Diaz Hendropriyono, Head of the Fiscal Policy Agency of the Ministry of Finance Febrio Kacaribu, and the President Director of IDX, who serves as the organizer of IDXCarbon, Iman Rachman.
The event was also attended by various stakeholders, including representatives from partner countries, the Deputy Chairman of Commission XII of the Indonesian Parliament, leaders of ministries/agencies, businesses, and related associations. It is hoped that this event will serve as the starting point for fostering collaboration in implementing international carbon trading, which begins today.
The First International Trade of Indonesian Carbon Units reflects Indonesia’s commitment after COP 29 and serves as proof that Article 6 of the Paris Agreement can be implemented. This moment also strengthens efforts to accelerate the submission of Indonesia’s 2nd Nationally Determined Contribution (NDC), which is due by February 10, 2025.
To build a transparent, high-integrity, inclusive, and fair carbon ecosystem, the Indonesian government has strengthened critical elements in the carbon ecosystem, including:
- The National Registry System (SRN),
- Measurement, Reporting, and Verification (MRV),
- Greenhouse Gas Emission Reduction Certificates (SPE-GRK), and
- Authorization and Corresponding Adjustment (CA) for international carbon trading.
Minister of Environment Hanif Faisol Nurofiq stated, “Through these essential elements of the carbon ecosystem, it is ensured that the Emission Reduction Certificates (SPE) issued by Indonesia have high integrity.”
Indonesia is now prepared for international carbon trading, with 1,780,000 tons of CO₂e carbon units authorized today. These come from the energy sector, including:
- Pengoperasian Pembangkit Listrik Baru Berbahan Bakar Gas Bumi PLTGU Priok Blok 4
- Konversi Dari Pembangkit Single Cycle Menjadi Combined Cycle (Add On) PLTGU Grati Blok 2
- Pengoperasian Pembangkit Listrik Tenaga Air Minihidro (PLTM) Gunung Wugul
- Pengoperasian Pembangkit Listrik Tenaga Gas Bumi Baru PLTGU PJB Muara Karang Blok 3, dan
- Konversi dari Pembangkit Single Cycle menjadi Combined Cycle Blok 2 PLN NP UP Muara Tawar
Regarding carbon unit trading through IDXCarbon, the National Registry System for Climate Change Control (SRN PPI), managed by KLH/BPLH, has integrated with the IDXCarbon trading system, which is supervised by OJK.
“The Indonesian government guarantees that every certificate issued for international carbon trading has been validated and authorized to safeguard against double accounting, double payment, and double claims,” said Minister Hanif.
On this occasion, OJK Chairman Mahendra Siregar praised the swift and coordinated efforts of related ministries and agencies, particularly the Ministry of Environment, in facilitating the opening of international carbon trading. This initiative highlights Indonesia’s strong commitment to advancing its role in the global carbon market.
“We warmly welcome and congratulate the leadership of the Red and White Cabinet under President Prabowo Subianto, which has achieved this within three months, unlocking the potential of the carbon exchange to strengthen national economic growth,” Mahendra said.
Since its launch on September 26, 2023, trading activity on IDXCarbon has shown positive progress. By the end of 2024, participants registered as Carbon Exchange Service Users had reached 100, a significant increase from just 16 users at the launch of IDXCarbon. IDXCarbon has also celebrated a remarkable achievement by cumulatively trading one million tons of carbon units.
In his remarks, IDX President Director Iman Rachman emphasized that this success was supported by IDXCarbon’s robust and reliable trading system. “IDXCarbon integrates global best practices from emission allowance markets and carbon credit markets into one system, enabling the trading of Technical Approval of the Emissions Upper Limit – Business Actors (PTBAE-PU) and SPE-GRK. Today’s inaugural international trade demonstrates the readiness and comprehensiveness of IDXCarbon’s system to support both domestic and international carbon trading.”
The success of international carbon trading depends on collaboration among nations, private sectors/industries, financial institutions, philanthropies, banks, and other stakeholders. Essentially, carbon trading is a collective action requiring seamless coordination among all parties involved.
