Energy Observer Says Carbon Exchange Can Increase Electricity BPP

JAKARTA - Executive Director of the Reforminer Institute, Komaidi Notonegoro, positively welcomed the inauguration of the Indonesian Carbon Exchange (IDX Carbon) conducted by President Joko Widodo on Tuesday, September 26.

In Indonesia, he said, there are 3 sectors that produce the most carbon emissions, namely electricity, transportation and industry.

With this carbon exchange, Komaidi said there would be consequences that need to be anticipated because it will have an impact on the Basic Cost of providing electricity (BPP).

"There is an impact on the electricity BPP. Previously there were no additional costs, with the carbon exchange, of course there will be additional. It depends on the capping at what limit. If more, there will be costs that must come out," said Komaidi in the Energy Corner quoted Thursday, October 5.

He added that before there was a carbon exchange, the Ministry of Environment and Forestry (KLHK) had issued quality standards to all sectors.

To meet the standards set by the Ministry of Environment and Forestry, he said, based on a PLN study, there was an additional Rp115-Rp120 per KWh.

"It will depend on the capping, how much the difference will be for additional costs for friends in the electricity sector," added Komaidi.

Not to mention that so far 70 percent of electricity production in Indonesia is still based on fossils, so the government still has to pay close attention to this matter.

For this reason, Komaidi asked that this not only needs to be seen from an environmental perspective but also needs to balance it with social, economic and people's purchasing power.

"That's right, the perspective from an environmental point of view is very good. We have to balance it because there are social, economic and people's purchasing power aspects, including the continuity of the IPP business, so it must be seen from all aspects," concluded Komaidi.