Indonesia launches carbon exchange IDXCarbon

IDXCarbon is a milestone for Indonesia's decarbonization commitment to achieve net zero emissions by 2060 or sooner.

Jakarta (ANTARA) - The Indonesia Carbon Exchange (IDXCarbon) was officially launched by President Joko Widodo (Jokowi) in Jakarta on Tuesday, according to President Director of the Indonesia Stock Exchange (BEI), Iman Rachman.

IDXCarbon has a transparent, reasonable, and efficient trading system in accordance with the regulation of the Financial Services Authority (OJK) Number 14 of 2023 on carbon trade in the exchange, Rachman said.

In addition to transparency in price, IDXCarbon offers a simple mechanism for transactions that includes auctions, regular trading, negotiated trading, and a marketplace, he remarked.

IDXCarbon is connected to the National Registration System on Climate Change Control (SRN-PPI) of the Ministry of Forestry and Environment to simplify carbon unit transfers and avoid double counting.

Companies that have the commitment to voluntarily reduce their greenhouse gas emissions could use the IDXCarbon service and buy carbon credits.

"Companies can first register by filling the forms for IDXCarbon users available at its website www.idxcarbon.co.id," Rachman said.

Project owners already having carbon credit units registered in the SRN-PPI can sell the units through IDXCarbon.

In its initial carbon trading on Tuesday, as of 11:00 Jakarta time, some 459,495 tons of carbon units were sold in 24 transactions at the IDXCarbon.

Pertamina New and Renewable Energy (PNRE) provided the carbon units from the Lahendong Project Unit 5 and Unit 6 of PT Pertamina Geothermal Energy Tbk.

Companies that bought the carbon units comprised:

PT Bank Central Asia Tbk
PT Bank CIMB Niaga Tbk
PT Bank DBS Indonesia
PT Bank Mandiri (Persero) Tbk
PT BNI Sekuritas
PT BRI Danareksa Sekuritas
PT CarbonX Bumi Harmoni
PT MMS Group Indonesia
PT Multi Optimal Riset dan Edukasi
PT Pamapersada Nusantara
PT Pelita Air Service
PT Pertamina Hulu Energi
PT Pertamina Patra Niaga

"IDXCarbon is a milestone for Indonesia's decarbonization commitment to achieve net zero emissions by 2060 or sooner," Rachman said.

He added that IDXCarbon tries to provide transparency, reliability, and security as the best solution in Indonesia's carbon trading.

"Hence, it would create orderly, reasonable, and efficient trading," he remarked.

On September 18, the OJK issued the license for BEI to operate the carbon exchange.

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