Sri Mulyani Reveals The Government Continues To Encourage Carbon Exchange Development

President Prabowo Subianto shook hands with Minister of Finance Sri Mulyani after delivering a press statement regarding the increase in VAT rates. (Photo: ANTARA)

Minister of Finance Sri Mulyani Indrawati said in encouraging the development of the government's carbon market to focus on implementing the carbon tax and regulation of upper limits on sectoral emissions.

"The implementation of the carbon tax and the regulation of upper limits on sectoral emissions to encourage the development of carbon exchanges," he said at the opening of the 2025 IDX trading on Thursday, January 2.

In addition, Sri Mulyani added that recently the carbon tax has often been a talk lately and is currently coordinating with related ministries, including the Ministry of Trade and the Ministry of Energy and Mineral Resources (ESDM).

"So we will continue to coordinate with relevant ministers and related institutions, especially with the trade ministry because previously, in this case we will continue to strengthen, including various agencies such as the Ministry of Energy and Mineral Resources and even transportation," he said.

For information, Indonesia has adopted a carbon tax policy through Law Number 7 of 2021 concerning Harmonization of Tax Regulations (UU HPP).

Previously, the Indonesia Stock Exchange (IDX) recorded a carbon exchange transaction of IDR 19.73 billion since its launch in September 2023 until December 27, 2024.

Deputy Commissioner for Capital Market Investment Management and OJK Securities, Aditya Jayantara, noted that the volume of carbon exchange transactions until December 27, 2024 was recorded at 908,018 tons of CO2e and the total transaction frequency was 152 times with a total value of IDR 50.64 billion.

Aditya conveyed that service users were 100 companies with a total carbon unit of 1,349,894 tons of CO2e.

So that now there are still carbon units that can be traded at 1,349,894, while 427,247 have been traded.

"We have a fairly conducive condition in this carbon trading figure," Aditya said at the 2024 Indonesia Stock Exchange Trading Closure Inauguration Press Conference, Monday, December 30.

To date, three projects have been recorded as many as three project owners of greenhouse gas emission reduction certificates (SPE-GHG). These include the Lahendong Unit 5 & Unit 6 PT Pertamina Geothermal Energy Tbk project, the construction of a New Power Plant Fueled by PLTGU Block 3 PJB Muara Karang, and the Mount Wugul Minihydro Water Power Plant (PLTM).