OJK: Expand Clean Energy So That The Indonesian Carbon Market Is Competitive

Director of Financial Supervision of Derivatives and Carbon Exchange of the Financial Services Authority (OJK) Lufaldy Ernanda. (Photo: Doc. Antara)

JAKARTA - Director of Financial Supervision for Derivatives and Carbon Exchange of the Financial Services Authority (OJK) Lufaldy Ernanda said that increasing clean energy is one way to increase the competitiveness of the Indonesian carbon market, especially in the Asian region.

He said that many investors from abroad want to invest in Indonesia, but they are hesitant because they consider how clean the available energy sources are.

"Investors actually want to enter Indonesia, but it turns out that one of the points they see is how clean our energy is," said Lufaldy Ernanda in Jakarta, quoted from Antara, Friday, October 18.

He also asked stakeholders in Indonesia to focus more on developing various clean energy sources to attract investment.

"Don't lose to Vietnam, for example, because they focus on clean energy Then a lot of renewable energy is built, so that investment will be more attractive," he said.

Lufaldy stated that now there are actually many industry players in Indonesia who have calculated the baseline of emissions.

He is also optimistic that Indonesia can adopt a complete carbon trading ecosystem at the beginning of next year.

"We'll see later, in early 2025, hopefully later if everything goes well, we will adopt a carbon trade whose ecosystem is very complete," he added.

According to the Electricity Emissions Calculation and Reporting Application (APPLE-GATRIK) of the Ministry of Energy and Mineral Resources, the volume of coal PLTU carbon transactions through the Emission Trading System (ETS) reached 7.04 billion tons of equivalent CO2 (CO2e) with a transaction value of IDR 82.87 billion in 2023.

Meanwhile, OJK noted that since the launch of the Indonesian carbon exchange on September 26, 2023 to September 27, 2024, the value of carbon exchange trading has reached IDR 37.06 billion with a carbon trading volume of 613,894 tons of CO2e.