IDX Records Carbon Exchange Transactions Reaching IDR 1.46 Billion Throughout May 2024

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JAKARTA The Indonesia Stock Exchange (IDX) reported on carbon trading during the May 2024 period, the value of the IDX Carbon carbon exchange trading transaction reached IDR 1.46 billion.

Furthermore, IDX Carbon recorded carbon trading of 36,363 tons of equivalent CO2 (tCO2e) and 18 transactions.

Meanwhile, the number of service users has grown to a total of 62 service users. In addition, there are 2 products of Emission Reduction Certificates - Greenhouse Gas (SPE-GHG) registered with IDXCarbon, namely the Lahendong Unit 5 & Unit 6 Project of PT Pertamina Geothermal Energy Tbk and the Construction of a New Natural Gas-Based Power Plant PLTGU Block 3 PJB Muara Karang.

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.

The IDX through the Indonesia Carbon Exchange is committed to developing a carbon trade that is transparent, orderly, and in accordance with world practices so that it can open up the potential for Indonesia's carbon trade.

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 said that currently, carbon transactions are still small because supply and demand are still minimal, because 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.