There is a Carbon Exchange, APLSI Says There Will be Additional Costs for Private Electricity Producers

Illustration (Photo: Doc. Antara)

JAKARTA - The government recently inaugurated the Indonesian Carbon Exchange (IDX Carbon) on September 26.

With this carbon exchange, the Association of Indonesian Private Electricity Producers (APLSI) stated that there may be additional costs charged to entrepreneurs.

General Chair of APLSI, Arthur Simatupang said, in terms of cost structure, it is necessary to pay close attention to the influence of this carbon exchange.

"Because before the existence of this carbon exchange, we also saw the existence of a carbon tax, so the carbon NEK was established, all activities that produce carbon to 1 ton of CO2 have value now," he said in the Energy Corner, quoted on Wednesday, October 4.

With the carbon exchange, he admitted that there was already a carbon tax worth IDR 30,000 per ton of C02.

"With the existence of a carbon exchange, we will see that the movement of this exchange will result in liquidity. We will see that in the future carbon will have a higher value, so carbon emitters will be charged higher fees, while those who succeed in reducing carbon will get credits," he said.

He added that currently his party is still continuing to pay attention to the regulations on the carbon exchange.

"But there is a clause where actually every time there is a regulatory change, there is actually a pass-through treatment. So in this case the additional costs for buying the carbon, will it be borne by the PLTU owner or will it be borne by PLN, or by consumers," explained Arthur.

He asked all parties involved in carbon trading to pay attention to the economic impacts that arise because the carbon exchange was only implemented recently.

Apart from that, according to him, the costs incurred are likely to continue to increase in the future.

"This is what we need to pay attention to as a policy, because this has only just been implemented in Indonesia, but later there will be those who will have to put the financing into their books and into their costing," concluded Arthur.