OJK Leaks Still 71.95 Percent Carbon Emissions Haven't Been Sold

JAKARTA - The Financial Services Authority (OJK) revealed that the development of the carbon exchange in Indonesia, until November 2023, was around 71.95 percent of the carbon emissions offered on the Carbon Exchange had not been sold.

Chief Executive of the Capital Market Supervisory, Derivative Finance, and Carbon Exchange of the Financial Services Authority (OJK) Inarno Djajadi said, since its launch on September 26, 2023, until November 30, 2023, 41 service users on the carbon exchange have received permits.

The user increased compared to October 31, 2023, which was only 25 users.

Furthermore, the total volume of 490,716 tons of CO2 is equivalent and the accumulated value is IDR 30.70 billion, with details of 30.56 percent in the regular market or IDR 9.38 billion, 9.24 percent in the negotiation market or IDR 2.84 billion and 60.20 percent in the auction market or IDR 18.40 billion.

"The potential for future carbon exchanges is still quite large, considering that 71.95 percent of the carbon offered has not been sold yet," he said in the virtual November 2023 RDK, Monday, December 4.

Inarno added that since its launch on September 26, 2023, until November 30, 41 service users on the carbon exchange have received permits.

Previously, on October 31, 2023, there were 25 service users.

The total volume of carbon emissions traded is 490,716 tons of equivalent CO2, with an accumulated value of IDR 30.70 billion.

In detail, 30.56 percent is a transaction on the regular market equivalent to Rp9.38 billion.

Then, by 9.24 percent is a transaction in the negotiation market which is equivalent to IDR 2.84 billion, and 60.20 percent is a transaction in the auction market which is IDR 18.48 billion.

On a different occasion, the Head of the Indonesia Stock Exchange (IDX) Business Development Division, Ignatius Denny Wicaksono, in increasing carbon trading, his party has prepared a number of strategic steps such as creating a Raod map for carbon exchanges and expanding the carbon trading sector.

Denny added that the IDX is also conducting a study on the proposal of brokerage for securities. Later, securities companies can participate as intermediaries in carbon trading on carbon exchanges.

Regarding brokerage, Denny explained, this is still a concept that is being studied.

However, there are several securities companies that already provide carbon exchange trading services.

Denny said the IDX not only wants to expand the carbon trade sector on a domestic scale but will go international.

"The IDX is currently waiting for policies related to the opening of carbon trading in the international market. If it is international, the demand will increase. Hopefully we can unlock all the value," he said.