This is the Procedure for Organizing Carbon Trading through the Carbon Exchange

Photo: Doc. Indonesia Stock Exchange

JAKARTA - Chief Executive of Capital Market Supervision, Financial Derivatives and the OJK Carbon Exchange, Inarno Djajadi, said that the OJK has the authority to regulate secondary trading of instruments related to the economic value of carbon on the carbon exchange.

According to him, carbon exchanges can only be held by market organizers who have obtained a business license from the Financial Services Authority.

"The carbon exchange can develop activities and/or products based on carbon units (with OJK approval)," he said at a press conference in Jakarta, Tuesday, September 26.

Inarno explained, in SEOJK 12/2023 concerning Procedures for Organizing Carbon Trading through Carbon Exchanges, this was implemented to follow up on provisions on procedures for organizing carbon trading on carbon exchanges, operations and internal control of Carbon Exchange Organizers, as well as provisions regarding requirements and licensing procedures for Carbon Exchange Organizers in POJK 14/2023.

"Supervision of Securities trading including Carbon Units (secondary market) based on the Capital Market Law and the P2SK Law is carried out by the OJK and parties who can carry out Carbon Exchange activities must obtain a business permit from the OJK," he stressed.

Inarno said, there are a number of procedures for implementing carbon trading through a carbon exchange, namely the scope of carbon units that can be traded at a carbon exchange organizer, requirements and details of capital documents for a carbon exchange organizer, requirements for the integrity and financial viability of shareholders of a carbon exchange organizer,

"Then, there are requirements for integrity, competence and financial reputation of members of the board of directors and members of the board of commissioners organizing the carbon exchange," he added.

Then, the authority to assess the suitability and suitability of shareholders, members of the board of directors and members of the board of commissioners of carbon exchange organizers, operations and internal control, including the obligation of carbon exchange organizers to provide systems and/or facilities to support trading and supervision of carbon unit trading as well as internal control.

Next are the mechanisms and requirements for documents for applying for a business license for carbon exchange organizers, regulations and articles of association for carbon exchange organizers, work plans and annual budgets for carbon exchange organizers, and finally the type of report and time for submitting reports by carbon exchange organizers.