KSP And OJK Agree To Guard Carbon Trading

Presidential Chief of Staff, General TNI (Ret.) Dr. Moeldoko, received a meeting with the Chairman of the Board of Commissioners of the Financial Services Authority (OJK), (doc KSP).

JAKARTA The Presidential Staff Office (KSP) and the Financial Services Authority (OJK) agreed to oversee carbon trading, which was directed by President Joko Widodo. This commitment surfaced when the Presidential Chief of Staff, General TNI (Ret.) Dr Moeldoko, met with the Chairman of the Board of Commissioners of the Financial Services Authority (OJK), Mahendra Siregar, at the Bina Graha building, Jakarta, Wednesday, October 11.

As previously reported, at the launch of the Indonesian Carbon Exchange (BKI), Tuesday, September 26, President Joko Widodo mandated five things related to carbo trading. First, carbon potential must create new sustainable and environmentally friendly economic opportunities. Second, carbon trading in Indonesia must refer to international carbon standards. Third, the importance of utilizing technology for effective and efficient carbon transactions.

Fourth, it is necessary to set targets and schedules, both for the domestic and international market. Fifth, it is necessary to regulate and facilitate the voluntary carbon market in accordance with international practices without disrupting the achievement of Indonesia's Nationally Determined Contribution (NDC).

"KSP and OJK agreed to oversee and follow up on these five Presidential directives. Of course, with coordination with relevant ministries and institutions," said Moeldoko.

The Presidential Chief of Staff appreciated the collaboration between OJK and related Ministries/Institutions that had moved quickly to launch the Carbon Exchange. Moeldoko hopes that OJK as the financial authority that oversees Banking, Capital Market, and IKNB, can encourage its industry to increase financing to business actors who are in the green energy and economy ecosystem. Such as Electrical Vehicle (EV), Hydro/Geothermal Power Plant, and other users of green energy products.

"This is important to drive the transition to clean and sustainable energy," said Moeldoko.

On that occasion, Chairman of the OJK Board of Commissioners, Mahendra Siregar, said that since the first trading until October 10, 2023, there has been a carbon trade in the form of a Greenhouse Gas Emission Reduction Certificate (SPE-GHG) for the Indonesia Technology Based Solution series of 459,967 tons of CO2e, with a total value of RP 29.2 billion. The average price per carbon unit is Rp 63,502.

"Buyers come from the industrial, capital and banking sectors," explained Mahendra.

Separately, the Director of Greenhouse Gas Inventory and Monitoring for Verification Reporting of the Ministry of Environment and Forestry, Hari Wibowo, revealed that in the future there will be the potential for additional SPE-GRK supply from the renewable energy sector of approximately 900,000 tons of CO2e.

Meanwhile, in terms of purchasing or demand, he continued, OJK is still considering the potential for purchases by banks as an effort to achieve Net Zero's target in terms of their internal emissions. "In addition, there is potential for international buyers who are interested in buying carbon units from Indonesia. Of course, coordination is needed from the relevant ministries and institutions," said Hari Wibowo when contacted by the KSP media team.

"This is a strategic step to implement an effective sustainable financial principle in dealing with issues related to climate change," he added.

In addition to the matter of carbon trading, the meeting at the KSP office was also discussed on the issue of online loans (pinjol). Currently, OJK is reviewing regulations related to interest rates and online loan administration costs in order to provide healthy and fair competition, both for borrowers and loan platform owners.