OJK Boss: Indonesia's Carbon Exchange Is One Of The Most Important In The World

Chairman of DK OJK Mahendra Siregar (Photo: Doc. IDX)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar said that the establishment of the Indonesian Carbon Exchange was a historic momentum for Indonesia in supporting the government's efforts to achieve the target of reducing greenhouse gas (GHG) emissions.

According to him, this strategic step is in line with the government's attitude in ratifying the Paris Agreement.

"Indonesia's carbon currency will be one of the largest and most important carbon exchanges in the world because of the volume and diversity of trafficked carbon units," he said Tuesday, September 26.

Mahendra explained that the Indonesian initiative will further show a contribution to the global environment in terms of reducing carbon emissions.

"Today we start history and the beginning of that new era," he stressed.

Mahendra noted that Indonesia has a target of reducing GRK emissions, by 31.89 percent (unconditioned and without international assistance) or by 43.2 (with international support) from its normal emission rate (or Business As Usual) by 2030.

He said, according to the enactment of Law no. 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK), OJK has the authority to regulate and supervise carbon trading through the Carbon Exchange in Indonesia.

"The very important goal of carbon trading in Indonesia is to provide Economic Values for the carbon units produced or for any efforts to reduce carbon emissions, in order to achieve the nationally Determined Contributions target from the Indonesian government and optimize Indonesia's potential as a country producing carbon units," he concluded.