OJK Reveals Carbon Exchange Transaction Reaches IDR 36.77 Billion

JAKARTA - Chief Executive of the Capital Market Supervisory, Derivative Finance, and Carbon Exchange of the Financial Services Authority (OJK) Inarno Djajadi reported that until May 31, 2024, the transaction value on the Carbon Exchange or Carbon IDX was IDR 36.77 billion.

"Since its launch on September 26, 2023 to May 31, 2024, 62 service users have received permits with a total volume of 608,427 tCO2e and an accumulated value of Rp36.77 billion," he said at a press conference on the results of the OJK Board of Commissioners Meeting in May 2024, Monday, June 10.

Inarno conveyed the transaction value on the Carbon Exchange which reached Rp36.77 billion, with details of the transaction value of 26.86 percent in the Regular Market, 22.88 percent in the Negotiated Market and 50.26 percent in the Auction Market.

According to Inarno, the potential for the Carbon Exchange in the future is still very large considering that there are 3,765 registrants registered in the National Regtribution System for Climate Change Control (SRN PPI) and the high potential for carbon units to be offered.

The transaction value on the carbon exchange tends to remain minimal as reflected on April 30, 2024, the transaction value on the carbon exchange is IDR 35.31 billion, with 57 users.

Therefore, during the April to May period, transactions on the carbon exchange only increased by Rp1.46 billion with the number of users increasing by five users.

For information, President Joko Widodo inaugurated the Indonesian Carbon Exchange (IDX Carbon) on September 26, 2023 as a form of support in achieving Indonesia's NDC, which accommodates the needs of carbon trading in Indonesia.

IDX Carbon/Indonesia Carbon Exchange is a Carbon Exchange brand run by the Indonesia Stock Exchange.

Previously, the Head of the Center for Climate Change Financing Policy and Multilateral of the Fiscal Policy Agency (BKF) of the Ministry of Finance Boby Wahyu Hernawan admitted that transactions on carbon exchanges had remained minimal since they were launched on September 26, 2023 with a transaction value of IDR 35.3 billion, as many as 57 service users had made transactions in the carbon exchange.

In addition, the total volume of carbon trading reaches 572 thousand tons of equivalent CO2 with a total transaction frequency of 60.

Boby revealed that carbon transactions are currently small because supply and demand are still minimal, because from various parties do not understand the economic value of monetized carbon, and can even be traded.

"Now once again, our role is to promote to all parties to be able to make efforts to reduce CO2 and benefit from the carbon exchange," said Boby in media gathering, Wednesday, May 29.

In addition, Boby said that in the future it is necessary to make various efforts in order to boost the increase in carbon exchange transactions in line with the potential for carbon reduction suppliers which are considered beneficial, especially for the forestry sector.