OJK Records Carbon Exchange Transactions Reach IDR 50.55 Billion Until November 2024

Screenshots - Chief Executive Of OJK Capital Market Supervisory, Inarno Djajadi

JAKARTA - The Financial Services Authority (OJK) reported the development of the carbon exchange until November 2024. The Chief Executive of the OJK Capital Market Supervisory, Inarno Djajadi, said that since its launch on September 26, 2023 to November 29, 2024, 94 service users have received permits with a total volume of 906,440 tCO2e and an accumulation value of IDR 50.55 billion.

"With details of the transaction value of 19.83 percent in the Regular Market, 43.39 percent in the Negotiated Market, 36.56 percent in the Auction Market, and 0.22 percent in the marketplace," said Inarno, quoted on Saturday, December 14.

For information, President Joko Widodo inaugurated the Indonesian Carbon Exchange (IDX Carbon) on September 26, 2023 as a form of support in achieving Indonesia's NDC, which accommodates the needs of carbon trading in Indonesia.

IDX Carbon/Indonesia Carbon Exchange is a Carbon Exchange brand run by the Indonesia Stock Exchange.

Previously, the Head of the Center for Climate Change Financing Policy and Multilateral of the Fiscal Policy Agency (BKF) of the Ministry of Finance Boby Wahyu Hernawan admitted that transactions on carbon exchanges had remained minimal since they were launched on September 26, 2023 with a transaction value of IDR 35.3 billion, as many as 57 service users had made transactions in the carbon exchange.

In addition, the total volume of carbon trading reaches 572 thousand tons of equivalent CO2 with a total transaction frequency of 60.

Boby revealed that carbon transactions are currently small because supply and demand are still minimal, because from various parties do not understand the economic value of monetized carbon, and can even be traded.

"Now once again, our role is to promote to all parties to be able to make efforts to reduce CO2 and benefit from the carbon exchange," said Boby in media gathering, Wednesday, May 29.

In addition, Boby said that in the future it is necessary to make various efforts in order to boost the increase in carbon exchange transactions in line with the potential for carbon reduction suppliers which are considered beneficial, especially for the forestry sector.