Sambut Market Positive For International Carbon Trading

IDX (Photo: Antara)

JAKARTA - The Indonesian Carbon Exchange or IDX Carbon ensures that market participants positively welcome the carbon credit trade to foreign parties which is planned to start on January 20, 2025.

This is in accordance with Presidential Regulation (Perpres) 98 of 2021 and Ministerial Regulation (Ministerial Regulation) of Environment and Forestry (LHK) Number 21 of 2022, which states the authorization mechanism from the Minister for carbon credit that can be traded to foreign parties.

"The opening of the international market for the first time was positively welcomed with high enthusiasm from various parties. We received many questions, both from foreign media and foreign potential buyers. However, we still have to look at concrete transactions in the future," said Director of Stock Exchange Indonesia (IDX) Jeffrey Hendrik quoting Antara.

Jeffrey said the Ministry of Environment (LH) is in the process of granting authorization, on the other hand, it is not known for sure the volume to be available.

"The indications of the project that will be given authorization are projects belonging to PLN groups that have been registered in the National Registration System (SRN) and IDXCarbon," said Jeffrey.

In early 2025, Jeffrey revealed that IDX Carbon also recorded the addition of three Greenhouse Gas Emission Reduction Certificate (SPE-GHG) projects, which further enriched the number of new carbon units.

He explained that the first project belonged to PT PLN Indonesia Power which recorded a carbon unit originating from the PLTGU Priok Blok 4 Gas Fuel New Power Plant Operation project of 763,653 tCO2e with the year of absorption or reduction of emissions occurring (in the vintage year) 2021.

Furthermore, namely the PT PLN Indonesia Power project, namely the Conversion from Single Cycle Generation to Combined Cycle (Add On) PLTGU Grati Blok 2, which recorded a carbon unit of 407,390 tCO2e with a vintage year 2021.

Then, the third project is the Conversion from the Single Cycle Generation to the Combined Cycle Block 2 PLN NP UP Muara Tawar which is managed by PT PLN Nusantara Power which recorded a carbon unit of 30,000 tCO2e with a vintage year 2023.