Ministry Of Investment: Indonesia Can Become A Carbon Market Hub Because It Has Great Potential In EBT Development

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Investment/Investment Coordinating Agency (BKPM) said Indonesia could become a carbon market hub because it has great potential for the development of new and renewable energy.

"Indonesia has great potential for the development of renewable energy, such as solar power plants (PLTS). In addition, Indonesia also has great potential for the development of Carbon Capture, Utilizaton and Storage (CCUS)," said Deputy for Investment Promotion at the Ministry of Investment Nurul Ichwan in Jakarta, quoted from Antara, Monday, December 11.

Nurul said Singapore has a high interest in investment in a sustainable business sector.

This is reinforced by the fact that Singapore is a leading country that has a focus on green investment in Southeast Asia.

Based on data from the Ministry of Environment and Forestry (KLHK), the potential for the carbon trade economy reaches IDR 350 trillion. The reason is, with a tropical forest area of 125.9 million hectares, Indonesia is able to absorb around 113.18 gigaton carbon.

Meanwhile, the Special Staff of the Coordinating Minister for Maritime Affairs and Investment, Edo Mahendra, said that the government's seriousness in working on the carbon market began by creating a strong domestic ecosystem, so that later a solid industry could be formed from upstream to downstream.

"So we have to create a domestic ecosystem first with strong regulations so that later we can create a market. After that, then we can talk about collaboration at the regional level," said Edo.

It is known that the President of the Republic of Indonesia Joko Widodo inaugurated the Indonesian Carbon Exchange (IDXCarbon) on September 18, 2023.

This is a milestone in Indonesia's achievement in realizing Indonesia's commitment to decarbonization towards Net Zero Emission in 2060.