Complete Products, The Government Will Prepare A Carbon Trading Scheme For The FOLU Sector

JAKARTA - The government is preparing a carbon trading scheme in the forest utilization sector and land use or other land use (FOLU) to complement products in the Indonesian Carbon Exchange.

The Minister of Forestry Raja Juli Antoni conveyed that the carbon trade scheme in the forest utilization and land use sector is planned to be completed in the near future in order to complete Indonesia's carbon trading products.

"We internally at the Ministry of Forestry are preparing a scheme that hopefully will cause enthusiasm for the carbon market, we are preparing various mechanisms," he said at a press conference on International Carbon Trading Inauguration, Monday, January 20.

Raja Juli menyampaikan bahwa pihaknya telah melakukan konsultasi dengan Otoritas Jasa Keuangan (OJK), dan pertemuan tersebut akan semakin intensif dan berharap sektor FOLU dapat segera diluncurkan di tempat ini dalam waktu yang tidak terlalu lama.

In addition, according to Pikanya, it also opens space for the public to communicate in the preparation of the FOLU sector carbon trading scheme so that carbon trading in the FOLU sector has good quality when it is launched.

On the same occasion, Chairman of the OJK Board of Commissioners Mahendra Siregar, welcomed all efforts made by the government to reduce carbon emissions through trading on the Indonesian Carbon Exchange.

He added that carbon products from the FOLU sector will provide added value for Indonesia, not only in terms of emission reduction, but also related to biodiversity, the environment, and social aspects.

"It can be said that maybe outside Indonesia does not exist, even if there is, not many other countries will have such great opportunities and contributive opportunities for reducing FOLU's carbon emissions products. So this is our collective determination and of course we fully support it," he said.

Mahendra also ensured that the monitoring and monitoring aspects would be carried out properly while for future infrastructure, it is necessary to pay close attention to the Indonesian Carbon Exchange, including blockchain-based recording systems.

"So everything in the existing stock exchange infrastructure in Indonesia already has standards and also of course the existence is parallel to similar carbon exchanges internationally. In terms of reliability and reliability, we all understand that we are upholding, so there are no worrying things for the transaction process itself," he concluded.

To note, the Government and the Indonesia Stock Exchange (IDX) officially launched the first International Carbon Trade in Indonesia through the Indonesian Carbon Exchange (IDXCarbon). Where at the beginning of its first trade, the volume of trade transactions was recorded at 41.822 CO2 or tCO2e.

Meanwhile, of the total transactions recorded, there are five projects, nine service users, and nine buyers in International Carbon Trade. The Authorized Indonesian Tech Based Solution or IDTBSA price is IDR 96,000, and the Authorized Indonesian Tech Based Solution Renewable Energy or IDTBSA-RE is IDR 144,000.

It is known that the five initial projects traded in the carbon exchange are the first, the minihidro water power plant Gunung Wugul which can reduce 5,000 tons of equivalent CO2. Second, the operation of a new power plant powered by natural gas in Priok Block IV amounting to 763,653 tons of CO2 equivalent.

Third, the single cycle plant is the combined cycle at the new natural gas-fueled power plant Grati Blok II with the potential for emission reduction of 495,000 tons of equivalent CO2. Fourth, Block II of the generating unit in Muara Tawar which has the potential to reduce emissions of 30,000 tons of equivalent CO2.

Fifth, new natural gas-fueled power plants Block III PJB Muara Karang which is able to reduce emissions of 750,000 tons of equivalent CO2.