According to the ministry's deputy for climate change control, Ary Sudijanto, the effort is being made because the carbon market in Indonesia is still not as popular as overseas carbon markets.
"Our volume of carbon trading is still limited with prices, which is also not too high," he said during a meeting with Commission XII of the House of Representatives here on Tuesday.
"We need to acknowledge that the carbon market that we are creating is new, not yet well-known by buyers, who are already familiar with the concepts of the international carbon market," he added.
The government is offering a choice of carbon trading schemes to developers through the carbon market in Indonesia.
"Carbon developers need to register with the National Registry System (SRN) and use existing international schemes. When trading in the secondary market, they can use our exchange or theirs," he explained.
According to Sudijanto, the carbon market would be beneficial for the country's income.
"We require that all carbon trades, both internationally, remain in Indonesia," he added.
However, he emphasized that carbon trade still requires strict supervision to ensure that the Enhanced National Determined Contribution (NDC) target can be implemented.
"The NDC surplus is expected to enter this carbon market. Carbon sales certificates, we need to ensure that what is traded is not counted twice and claimed by more than one party," Sudijanto said.
He further emphasized that the measurement of the key performance index of the carbon exchange will be adjusted to the new National Medium-Term Development Plan (RPJMN) on the volume of greenhouse gas emission reductions from various sectors.
"Later, this reduction will be interconnected. Investment in reducing greenhouse gases without funding, so between how we implement the carbon economic value and the achievement of the NDC, it is like two sides of the same coin that must exist," he explained.
"It is a bit difficult for us to meet our NDC target without strengthening its Carbon Economic Value," he added.
He further listed the enormous potential benefits some regions, such as Jambi and East Kalimantan combined, could derive from carbon trade, worth US$70 million.
"It has been transferred to the regional government through its development planning agency (Bappeda) through grants, which will be divided into components that contribute to reducing greenhouse gas emissions," he said.
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Translator: Lintang Budiyanti Prameswari, Yashinta Difa
Editor: Arie Novarina
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