The Potential For The Indonesian Carbon Exchange Is Called Capai Rp3,000 Trillion, From Which Sectors?

President Joko Widodo regarding the potential of the Indonesian carbon exchange (Photo: Doc. IDX)

YOGYAKARTA - President Joko Widodo said that the trade potential of the Indonesian carbon market could reach IDR 3,000 trillion. According to President Jokowi, there is one carbon dioxide gigaton (CO2) potential for carbon credit that can be generated. So the potential for the Indonesian carbon market is in what sector?

"Rp. 3,000 trillion could even be more. A very large number. Of course this will be a new sustainable and environmentally friendly economic opportunity in line with the direction of the world towards a green economy," Jokowi said at the launch of the first Carbon Exchange in Indonesia at the Indonesia Stock Exchange Building (IDX) on Tuesday, September 25.

Indonesia has officially opened carbon credit trade as a form of real contribution in overcoming the climate crisis. The proceeds from carbon trading will be reinvested for programs aimed at protecting or preserving the environment. The potential for the Indonesian carbon exchange is predicted to be one of the most important and largest in the world.

President Jokowi said that Indonesia has extraordinary potential in nature-based solutions. RI is also the only country with 60 percent fulfillment of carbon emission reductions originating from the natural sector. There is approximately 1 gigaton of carbon dioxide (CO2) carbon potential that can be captured, based on the president's records.

"If calculated, our carbon exchange potential can reach, the potential is IDR 3,000 trillion, even more. A very large number, which of course will be a new sustainable and environmentally friendly economic opportunity, in line with the direction of the world that is heading towards a green economy," said Jokowi.

To realize the realization of a green economy, President Jokowi encourages the creation of concrete steps in overcoming the impacts of climate change. This is because the dangerous effects of the climate crisis have been felt, ranging from pollution, flooding, rising geothermal temperatures, to drought.

"The carbon bed that we launched today could be a concrete step, it could be a big step for Indonesia to achieve the NDC (Nationally Determined Contribution) target," Jokowi continued.

There are three things that President Jokowi has focused or emphasized in running carbon trading. First, the father of the Mayor of Solo emphasized that it should make international carbon standards a reference. In addition, transactions in carbon trading must take advantage of technology in order to be effective and efficient.

Second, the President also requested a timeline and target in carbon trading for both domestic and international markets. Third, the President asked for voluntary carbon market arrangements and facilitation according to practices in the international community, and ensured that international standards did not interfere with Indonesia's NDC targets.

The Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves) revealed that the main target in Indonesia's carbon credit trade is not mining companies, but in the transportation sector and power plants. Both sectors are able to produce the largest carbon emissions in the country.

According to the Coordinating Ministry for Maritime Affairs and Fisheries, the emissions generated in mining companies and smelters are not as big as in the transportation and power generation sectors. However, the government continues to encourage mining companies and smelters to suppress the use of fossil energy from PLTU.

Such is the review of the potential for the Indonesian carbon exchange which was officially launched and opened by the Indonesian government. President Jokowi is optimistic that Indonesia can become the world's carbon axis if it can implement concrete programs for the creation of a green economy.

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