Minister Of Trade Budi Santoso: RI Supports Carbon Credit Market And Digital Trade

Minister of Trade Budi Santoso (center). (Photo: ANTARA)

JAKARTA - Indonesia is committed to supporting the growth of the carbon credit market in Asia-Pacific.

This includes digital trade by continuing to digitize, especially in terms of trade facilitation and development of digital infrastructure.

This was conveyed by the Minister of Trade Budi Santoso when representing Indonesian President Prabowo Subianto in the APEC Leader Dialogue with the APEC Business Advisory Council (ABAC) in Lima, Peru.

This forum is a series of APEC Economic Leaders' Week (AELW) 2024 activities.

The Forum was opened by Peru President Dina Bouarte and attended by Australian Prime Minister Anthony Albanese. Also present were representatives of Indonesian ABAC and the Indonesian Chamber of Commerce and Industry (Kadin).

"We view the carbon credit market that is interconnected in the Asia-Pacific region as important in supporting the transition to clean and fair energy. This is not only beneficial for the region, but also for Indonesia," Budi said in an official statement, written Monday, November 18.

In dialogue forums discussing ABAC recommendations, such as Innovative Funding Instrument through Currency Basketball Indexed-Bonds, Interoperable Carbon Credit Markets, and Trade Digitalization Digital Infrastructure. The discussion also highlighted Indonesia's potential to develop carbon trading exchanges and interoperable carbon loans at the regional level.

Regarding the idea of innovative financing, Budi conveyed the need for elaboration regarding this proposal so that micro, small and medium enterprises (MSMEs) can also be utilized.

Furthermore, referring to the statement by Special Envoy for Energy and the Environment for COP29, Indonesia's total carbon credit reaches 577 million tons of carbon.

"Therefore, it is necessary to optimize and interoperability the carbon trading exchange to bring great benefits to Indonesia," he said.

In the forum, representatives of the business world also said that Indonesia is a very potential and attractive country for investors.

Domestically, Indonesia is very focused on reducing emissions by 31.89 percent domestically and 43.2 percent through international collaboration. In the forestry sector, Indonesia has succeeded in reducing the level of forest fires by 82 percent.

Forest deforestation in Indonesia has also reached its lowest level in 20 years. Indonesia has also restored the mangrove forest ecosystem which plays a role in absorbing and storing carbon.

Indonesia has more than 20 percent of the world's total mangrove areas of 3.3 million hectares.