OJK Decides Not To Extend Discount On Carbon Exchange Transaction Fees

JAKARTA - The Financial Services Authority (OJK) has coordinated with the Fiscal Policy Agency (BKF) of the Ministry of Finance in discussing carbon taxes. Where the incentive for the cost of carbon exchange transactions by providing a 50 percent discount on transaction fees will end on October 31, 2023.

This was conveyed by the Chief Executive of the Capital Market Supervisory, Financial Derivative and Carbon Exchange OJK Inarno Djajadi in a virtual press conference on the Financial Services Sector and OJK Policy Assessment of the Monthly Board of Commissioners Meeting, Monday, October 30.

"We continue to review this and it seems that we will stick to our plan and will not extend the discount fee," he said.

In addition, the OJK still has one incentive, namely the cost exemption incentive to become a service user until September 2024. It is stated, in the circular letter Number SE-00013/BEI/09-2023 concerning the cost of using carbon exchange services.

Meanwhile, the cost of carbon unit transactions on the carbon exchange per carbon exchange service user for buying and selling carbon exchanges per transaction.

For the regular market and negotiations by 0.11 percent of the transaction value. Meanwhile, for the auction market and non-regular or marketplace, it is 0.22 percent of the transaction value

The IDX states that payment of transaction fees includes a value added tax. However, it does not include other tax obligations paid through the organizer of the carbon exchange as a mandatory levy.

The cost of carbon unit transactions is given incentives, namely in the form of reducing the value of bills from the total transaction fees charged to carbon exchange service users until October 31, 2023.

For regular markets and negotiations it is 0.05 percent of the transaction value. Meanwhile, for the auction market and non-regular markets it is 0.11 percent of the transaction value.

In its development, since its launch from September 26, 2023 to October 27, 2023, 24 service users have obtained permits with a total trading volume of 464,843 tons of CO2e equivalent and an accumulation value of Rp29.45 billion.

"From this value, 31.78 percent was obtained through the regular market, 5.48 percent through the negotiation market, and 62.74 percent through the auction market," he explained.

Inarno said that OJK is optimistic that the potential for carbon exchanges will be higher in the future, as reflected in the many registrants who have been registered in the National Climate Change Control Regtribution System (SRNPPI).

"In the future, the potential for carbon exchanges is still very large considering that there are 3,180 registrants registered in the National Climate Change Control System (SRNPPI) and the high potential for carbon units to be offered," he said.

Inarno hopes that through the carbon exchange it can increase efforts to control climate change and provide benefits for service users and create environmentally friendly economic sustainability.