Indonesia’s Carbon Credit Market Penetrates 50 Users Since Launch
Since its launch from September 26, 2023, to February 29, 2024, the Indonesia Carbon Exchange (IDXCarbon) has garnered 50 service users with a total volume of 501,910 tCO2e and a value of Rp 31.36 billion, distributed across Regular (31.39%), Negotiated (9.69%), and Auction (58.92%) Markets. Inarno Djajadi, Executive Head of Capital Market Supervision, Derivative Financial, and Carbon Exchange at Financial Services Authority (OJK), reported these figures during the OJK RDK press conference on March 4, 2024. He remains optimistic about IDXCarbon's potential, given the 3,453 registrants on the National Climate Change Registry System (SRN PPI) and the active carbon unit trading. Anticipated foreign trade, especially in forestry and marine sectors, is expected to fuel IDXCarbon's growth alongside the implementation of carbon taxes, supported by ongoing coordination between OJK, the Ministry of Environment and Forestry (KLHK), and the Ministry of Energy and Mineral Resources (ESDM). Jeffrey Hendrik, Director of Development at Indonesia Stock Exchange (BEI), underscores continuous efforts to involve more listed companies in discussions and awareness campaigns, aligning with the companies' pursuit of net-zero emissions. For more information on the provisions of carbon trading on the IDX and the general qualifications of carbon exchange users, members can refer here and here.