OJK Optimistic Carbon Exchange Can Live Trading In September 2023

JAKARTA - The Financial Services Authority (OJK) is optimistic that the carbon exchange will be launched in September 2023. This is through capital market infrastructure.

The Chief Executive of the Capital Market Supervisory, Derivative Finance and OJK Carbon Exchange, Inarno Djajadi, said that currently some of the legal grounds for the existence of carbon exchanges already exist, and some are still under discussion which is expected to be completed soon.

"We are optimistic that by September we can 'live trading' carbon exchanges," he quoted Antara as saying.

He said there was already Law Number 16 of 2016 concerning the Ratification of the Paris Agreement which set a target of reducing national carbon emissions by 29 percent (national effort) and 41 percent with international assistance by 2030.

There has also been Presidential Regulation Number 98 of 2021 concerning Carbon Economic Values (NEK), which among other things states that domestic and/or foreign carbon trading is carried out using a carbon market mechanism through carbon exchanges, and/or direct trading.

Meanwhile, Regulation of the Minister of Environment and Forestry Number 21 of 2022 concerning the Implementation of NEK states that the carbon exchange is an securities exchange or trade organizer who has obtained a business license from the authorities that organize an integrated regulatory and monitoring system for all activities in the financial services system.

Inarno also mentioned that there is a Regulation of the Minister of Energy and Mineral Resources Number 16 of 2022 concerning Procedures for the Implementation of NEK Sub-Sectors for Power Plants.

In January 2023, Law Number 4 of 2023 concerning Strengthening and Development of the Financial Sector (P2SK) was also passed.

"According to the mandate of this law, government regulations (PP) as the implementation of this law must have been completed six months after being promulgated or this July," said Inarno.

According to him, the draft government regulation (RPP) is currently being discussed by the Ministry of Finance.

He said that based on the P2SK Law, carbon units are an effect. The law also states that carbon exchanges can only be held by parties who have obtained business licenses from the OJK.

The law also states that further provisions regarding carbon trading through carbon exchanges are regulated in OJK regulations after being consulted with the DPR.

"We have held several meetings with the DPR, especially Komis XI of the DPR, they encourage this RPOJK to be completed quickly," said Inarno.

OJK hopes that the preparation of the POJK can be completed in August 2023, so that in September the carbon exchange can be launched.

The FGD discussed the carbon exchange was also attended by the Head of OJK Regional 8 Bali and Nusa Tenggara Kristianti Puji Rahayu, Head of the OJK Capital Market Regulation and Development Department Antonius Heri, Head of the OJK Special Audit and Effect Transaction Department Khoirul Muttaqien, and OJK Director of Digital Assets Supervision Lufaldy Ernanda.