OJK Officially Issues Trading Rules On Carbon Exchange

JAKARTA - The Financial Services Authority (OJK) has officially issued OJK Regulation (POJK) Number 14 of 2023. Where, the regulation regarding carbon trading through carbon exchanges (POJK carbon exchanges).

According to the OJK, this rule will serve as a guideline and reference for carbon trading through a carbon exchange implemented by market organizers.

POJK carbon exchange is mandated by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK), which mandates further regulation of carbon trading through carbon exchanges.

In accordance with the P2SK Law, the preparation of the POJK has gone through a consultation process with Commission XI of the House of Representatives of the Republic of Indonesia (DPR RI).

Quoting Antara, Head of the Department of Literacy, Financial Inclusion and OJK Communications Aman Santosa explained the substance of the POJK carbon exchange arrangement, including, first, the carbon unit traded through the carbon exchange is an effect and must first be registered with the National Climate Change Control Registribution System (SRN-PPI) and carbon exchange organizers.

Second, those who can organize business activities as carbon exchanges are market operators who already have a business license as the organizer of the carbon exchange from the OJK.

Third, carbon exchange organizers can carry out other activities, as well as develop carbon unit-based products after obtaining OJK approval.

Fourth, the implementation of carbon trading through carbon exchanges must be held regularly, fairly, and efficiently.

Fifth, Aman continued, carbon exchange organizers are required to have a paid-up capital of at least Rp. 100 billion, and are prohibited from originating from loans.

Then, sixth, shareholders, members of the board of directors, and members of the carbon exchange organizers must meet the requirements set by the OJK, and must go through a fit and proper assessment.

Then, seventh, OJK supervises carbon trading through carbon exchanges which includes carbon exchange organizers supervision, carbon trading supporting market infrastructure, carbon exchange service users, carbon unit transaction transaction transaction transaction transaction transaction transaction transaction transactions, carbon trading governance, risk management, consumer protection, as well as parties, products, and/or activities related to carbon trading through carbon exchanges.

Eighth, in carrying out business activities, carbon exchange organizers are allowed to draw up regulations, which regulations and changes will take effect after obtaining OJK approval.

Furthermore, ninth, any changes to the basic budget of carbon exchange organizers are required to obtain OJK approval before being notified or submitted to the minister who organizes government affairs in the field of law and human rights to obtain approval.

Finally, tenth, the work plan and annual budget for carbon exchange organizers must first obtain OJK approval before taking effect.