Carbon Market Is Getting Closer, OJK Signs MoU With The Ministry Of Environment And Forestry

Chairman of the OJK Board of Commissioners Mehendra Siregar (right) with the Minister of Environment Siti Nurbaya (Photo: Doc. OJK)

JAKARTA - The Financial Services Authority (OJK) and the Ministry of Environment and Forestry (KLHK) have agreed to expand cooperation and coordinate the implementation of tasks and functions of both parties in the field of sustainable finance regarding the implementation of Carbon Economic Values.

Chairman of the OJK Board of Commissioners Mahendra Siregar said the signing of a Memorandum of Understanding (MoU) became the basis for law on exchange and the use of carbon trading data through SRN-PPI (National Registry System for Climate Change Control) so that it can be carried out in accordance with applicable standards and procedures.

"This is an important step to be more prepared to welcome the existence of the Indonesian carbon exchange (market)," he said in a written statement today, Wednesday, July 19.

Menurut Mahendra, otoritas bersama pemerintah akan memiliki ruang yang semakin besar untuk melakukan eksekusi di lapangan.

"OJK synergizes with the government in the fields of human resources, exchanging information, promotion, socialization or roadshows to various places in the country, as well as abroad so that people can be further educated," he said.

On the same occasion, Minister of Environment and Forestry Siti Nurbaya Bakar welcomed the cooperation.

"This is clearly a very noble goal and function. But of course in its implementation there are very big challenges. I welcome this collaboration well and happily. May God bless our steps," said Siti.

The following are five points of the Memorandum of Understanding of the OJK and the Ministry of Environment and Forestry.

1. Harmonization between policies in the Financial Services Sector and policies in the field of environmental protection and management

2. Increase the capacity of Human Resources in the field of Environment and Forestry and the Financial Services Sector

3. Provision, exchange, utilization of data and/or information to support OJK and KLHK duties and functions

4. Research and/or surveys in the context of policy preparation and development in the fields of Environment and Forestry as well as the Financial Services Sector in the field of sustainable finance related to the implementation of Carbon Economic Values

5. Provision of Expert/Narasources in the Environment and Forestry and the Financial Services Sector.

To note, currently the Draft OJK Regulation (RPOJK) related to Carbon Trading through the Carbon Exchange has been consulted with Commission XI of the DPR RI and is expected to be promulgated in the near future.

The cooperation between OJK and KLHK is a continuation of the previous MoU which was carried out on May 26, 2014.