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Indonesia reaffirms plan to implement carbon exchange in September
Indonesia has reaffirmed its plan to implement carbon exchange starting in September, with the government estimating its carbon market could be valued at up to US$15 billion per tonne of CO2.
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PLN president director Darmawan Prasodjo (front left) and Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan (front right) attend the BNEF Summit in Nusa Dua, Bali.
T
he government has reaffirmed its plan to launch Indonesia’s first carbon exchange in September, aiming to bring the country closer to its net-zero emission reduction target.
Luhut Pandjaitan, coordinating maritime affairs and investment minister, told audiences on Monday that only entities operating in Indonesia would be allowed to trade on the exchange and the scheme would be similar to stock trading.
Previously, the Financial Services Authority (OJK) set a target that the country’s carbon exchange would start operations in September and it would not wait for the Finance Ministry’s carbon tax implementation.
“Our carbon market is estimated to be valued up to US$15 billion per tonne of carbon dioxide. So, this is a huge number,” Luhut said.
He added that the carbon exchange would help the country implement its carbon pricing mechanism, which it had laid the groundwork with the Presidential Regulation on carbon economic value along with its implementing regulation.
Besides the carbon exchange, Indonesia would also introduce regulations on international carbon trading, he said.
Asked if the country had already made a decision on the price of its carbon, Luhut said the government was still working on it.
