Member Of Commission XI DPR Calls RI Potentially Achieved IDR 8,000 Trillion From Carbon Economy

Illustration (Photo: Doc. Antara)

Member of Commission XI DPR RI Kamrussamad said Indonesia has the potential to reach IDR 8,000 trillion from the carbon economy, which comes from tropical rainforests covering an area of 125.8 million hectares, mangrove forests 3.31 million hectares, and peat forests 7.5 million hectares.

Indonesia's tropical rainforest is estimated to absorb up to 25.18 billion tons of carbon dioxide emissions per year, 33 billion tons of mangrove forests equivalent to carbon, and 55 billion tons of peat forests equivalent to carbon.

"If Indonesia sells carbon credit at a price of five US dollars per tonne in the carbon market, then Indonesia's potential revenue is IDR 8,000 trillion per year," he said as quoted by Antara, Thursday, May 11.

For this reason, the government has issued Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector which is the basis for regulations related to the carbon exchange which will be supervised by the Financial Services Authority (OJK).

According to him, the OJK must clearly place its institution as a regulator and supervisor, as well as listen to the interests of all carbon exchange stakeholders.

"The organizers of the carbon exchange can also be separated from the stock exchange, as refers to several countries such as America, Singapore, and Malaysia," he said.

OJK is also asked to carry out regulations and supervision in accordance with the P2SK Law, which OJK needs to be open to all business actors who want to obtain a permit as a carbon exchange operator.

"OJK also has an obligation to build carbon trading infrastructure, issue regulations related to the implementation of carbon exchanges, and control carbon trading," he said.