OJK Reveals Carbon Trading Mechanism, Retail Investors Cannot Participate

JAKARTA - The Financial Services Authority (OJK) has outlined the carbon trading mechanism which will start this month.

Chief Executive of the OJK Capital Market, Financial Derivatives and Carbon Exchange Supervision, Inarno Djajadi, said that in the initial stage there will be 99 Steam Power Plants (PLTU) that will participate.

Apart from that, in this initial stage only companies that have a Greenhouse Gas Emission Reduction Certificate (SPEGRK) and Technical Approval of Business Actor Emission Upper Limits (PTBAE-PU) are registered in the PPI SRN by the Ministry of Environment and Forestry (KLHK).

"For the initial stage, of course retail cannot participate," said Inarno at the August 2023 Monthly RDK press conference which was held virtually, Tuesday 5 September.

However, Inarno opens up opportunities for retail entrepreneurs to join in carbon exchange derivative products.

"Of course, it is very possible that in the future retail can enter, but not in carbon trading but in turn products," added Inarno.

In the short term, Inarno hopes that it can be traded domestically between those who own SPEGRK and PTBAE-PU.

He also hopes that in the future foreign business actors can participate in buying and selling carbon units on the Indonesian carbon exchange

Regarding the organizers of the carbon exchange, Inarno revealed that the OJK will also carry out selections for organizers. Later, those who meet the requirements set by the OJK can then become organizers.

OJK will review the economy of scale to ensure the possibility of implementing multi-organizers.

"Is it multiple organizers? It's very possible, but of course we have to examine the economies of scale whether multi organizers are appropriate or not, of course there are various considerations that we can make a decision on," concluded Inarno.