These are 10 OJK Rules Regarding Carbon Trading

OJK (Photo: Doc. Antara)

JAKARTA – The carbon exchange was officially launched by President Joko Widodo (Jokowi) today. Later, the carbon mechanism is expected to support Indonesia's achievement of Nationally Determined Contribution (NDC) of 31.89 percent for its own businesses, which is equivalent to 915 million tonnes of CO2 emissions in 2030.

Meanwhile, the Financial Services Authority (OJK) is the pioneer in launching the Indonesian carbon exchange. OJK Chief Executive of Capital Market, Financial Derivative and Carbon Exchange Supervision Inarno Djajadi said this initiative was based on Financial Services Authority Regulation Number 14 of 2023 concerning Carbon Trading through the Carbon Exchange (POJK 14/2023).

"There are 10 main carbon trading regulations contained in POJK 14/2023," he said in a press conference Tuesday, September 26.

First, continued Inarno, carbon units traded through the carbon exchange are securities and must first be registered in the National Registration System for Climate Change Control (SRN-PPI) and the Carbon Exchange Organizer.

"Secondly, parties who can carry out business activities as a carbon exchange are market organizers who have a business license as a Carbon Exchange Organizer from the OJK," he said.

Third, Carbon Exchange Organizers can carry out other activities and develop Carbon Unit-based products after obtaining OJK approval. Four, Carbon Trading Organizers through carbon exchanges must be organized regularly, fairly and efficiently.

“Fifth, Carbon Exchange Operators are required to have a paid-up capital of at least IDR 100 billion and are prohibited from originating from loans. "So the origins are clear," he stressed.

Six, shareholders, members of the board of directors and members of the commissioners are required to fulfill the requirements set by the OJK and must undergo a fit and proper test.

Seventh, OJK will supervise carbon trading which includes market infrastructure, transactions, governance, risk management, consumer protection, and other carbon exchange products or activities.

Eight, in carrying out business activities, carbon exchange organizers are permitted to prepare applicable regulations after obtaining OJK approval. Ninth, every change to the articles of association of the Carbon Exchange Organizer must obtain OJK approval and be submitted to the minister in charge of law and human rights.

"And finally, the annual budget work plan of the Carbon Exchange Organizer must first obtain OJK approval before it takes effect," concluded Inarno.