Santoso, representing President Prabowo Subianto at the dialogue in Lima, Peru, on Friday (November 15), conveyed that Indonesia supports digital trade by continuing digitalization, including in trade facilitation and digital infrastructure development.
"We see an interconnected carbon credit market in the Asia-Pacific region as essential to support a clean and equitable energy transition. This will benefit not only the region but also Indonesia," he noted in a statement from his ministry here on Monday.
The dialogue forum discussed ABAC recommendations, such as Innovative Funding Instruments through Currency Basket Indexed-Bonds, Interoperable Carbon Credit Markets, and Trade Digitalization Digital Infrastructure.
The minister emphasized that the innovative financing concept requires further detailed explanation to ensure its accessibility and benefits can extend to micro, small, and medium enterprises (MSMEs).
At the forum, world representatives also conveyed that Indonesia holds vast potential and is attractive to investors.
Indonesia is focusing on its target of reducing emissions by 31.89 percent domestically and 43.2 percent through international collaboration. In the forestry sector, Indonesia has succeeded in reducing the rate of forest fires by 82 percent.
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Deforestation in Indonesia has also reached its lowest level in the last two decades. The country also strives to restore the mangrove forest ecosystem which plays a role in absorbing and storing carbon.
One proof of Indonesia's commitment to carbon trading is reflected in the establishment of the National Carbon Agency.
Santoso explained that the Indonesian Government launched the carbon exchange (IDXCarbon) on September 26, 2023, organized by the Indonesia Stock Exchange (IDX) and is directly supervised by the Financial Services Authority (OJK).
This has shown that Indonesia is moving progressively in starting the carbon market policy domestically. Going forward, it is expected to support the carbon market connected with APEC economies.
Regarding digital trade, the minister stated that the discussion at the forum emphasized the importance of paperless trade.
In this regard, Indonesia will continue to conduct digitalization, including in terms of trade facilitation and digital infrastructure development.
This step is deemed essential to tackle the digital gap among people in the country, to develop e-commerce, and to improve the digital financial service ecosystem.
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Translator: Maria Cicilia, Raka Adji
Editor: Yuni Arisandy Sinaga
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