News

Joint Press Release
Press Release Number:
KLH/BPLH: S.20/C.6/HMS.2.3/B/01/2025
SP 12/GKPB/OJK/I/2025
PR No: 06/BEI.SPR/01-2025

Inauguration of International Carbon Trading

Jakarta, 20 January 2025 – Ministry of the Environment and Forestry/The Environmental Control Agency of the Republic of Indonesia (KLH/BPLH), Indonesia Financial Services Authority (OJK), and Indonesia Stock Exchange (BEI) officially inaugurated Indonesia's First International Carbon Unit Trade through the Indonesia Carbon Exchange (IDXCarbon) at the BEI Main Hall on Monday (20/1). This inauguration marks the biggest milestone in the implementation of carbon trading in Indonesia.

The First International Carbon Unit Trade of Indonesia was officiated by Minister of Environment Hanif Faisol Nurofiq, Minister of Forestry Raja Juli Antoni, OJK Chairman of Board of Commissioners Mahendra Siregar, OJK Executive Head of Capital Market Supervision, Derivative Finance, and Carbon Exchange Inarno Djajadi, Deputy Minister of Environment Diaz Hendropriyono, Head of the Fiscal Policy Agency of the Ministry of Finance Febrio Kacaribu, and President Director of BEI as the Organizer of IDXCarbon, Iman Rachman.

The inauguration ceremony was also attended by various stakeholders, including representatives from friendly nations, members of Commission XII of the Indonesian House of Representatives (DPR RI), leaders from ministries/agencies, businesses, and relevant associations. This event is expected to be the starting point for collaboration in implementing international carbon trading, which officially begins today.

The launch of Indonesia’s First International Carbon Unit Trade represents Indonesia's commitment following COP 29 and serves as proof that Article 6 of the Paris Agreement can be implemented. This moment also reinforces efforts to push forward and accelerate the second Nationally Determined Contribution (NDC), which is set to be submitted by 10 February 2025.

To build a transparent, high-integrity, inclusive, and fair carbon ecosystem, the Indonesian government has strengthened key elements within the carbon ecosystem, including: (1) the National Registry System (SRN), (2) Measurement, Reporting, and Verification (MRV), (3) Greenhouse Gas Emission Reduction Certificates (SPE-GRK), and (4) Authorization and Corresponding Adjustment (CA) for international carbon trading.

Minister of Environment Hanif Faisol Nurofiq stated, "Through these key elements of the carbon ecosystem, we can ensure that the Emission Reduction Certificates (SPE) produced by Indonesia are of high integrity."

Indonesia is now ready to conduct international carbon trading, as officially launched today, with an authorized carbon unit volume of 1,780,000 tons of CO2e from the energy sector. These units come from various projects, including the operation of the new natural gas power plant PLTGU Priok Block 4, the conversion of a single-cycle power plant to a combined-cycle plant (Add On PLTGU Grati Block 2), the operation of the mini-hydro power plant PLTM Gunung Wugul, the operation of a new natural gas power plant PLTGU PJB Muara Karang Block 3, and the conversion of a single-cycle power plant to a combined-cycle plant Block 2 PLN NP UP Muara Tawar.

For carbon unit trading through IDXCarbon, the National Registry System for Climate Change Control (SRN PPI), managed by KLH/BPLH, has been integrated with the IDXCarbon trading system, which is supervised by OJK.

"The Indonesian government guarantees that every certificate issued for international carbon trading has been validated and authorized as part of our safeguarding efforts against double accounting, double payment, and double claims," said Minister Hanif.

On this occasion, OJK Chairman of Board of Commissioners, Mahendra Siregar, highly appreciated the swift and well-coordinated efforts by relevant ministries and agencies, particularly the Ministry of Environment, in facilitating the opening of international carbon trading. This initiative highlights Indonesia’s strong commitment to advancing its role in the global carbon market.

"We are delighted and congratulate the leadership of the Merah Putih Cabinet under President Prabowo Subianto, as this achievement was reached within just three months, opening the potential for carbon exchange to strengthen national economic growth," said Mahendra.

Since its launch on 26 September 2023, trading activity on IDXCarbon has shown positive progress. By the end of 2024, the number of registered Carbon Exchange Service Users had reached 100 participants, a significant increase from just 16 users at the time of IDXCarbon’s launch. IDXCarbon has also celebrated a major milestone, having cumulatively traded one million tons of carbon units.

In his speech, President Director of BEI and IDXCarbon Organizer, Iman Rachman, stated that this success is also supported by the robust and reliable IDXCarbon trading system.

“IDXCarbon integrates the world's best practices from both emission allowance markets and carbon credit markets within a single system. This enables the trading of Technical Approval for Emission Limits for Business Actors (PTBAE-PU) and Greenhouse Gas Emission Reduction Certificates (SPE-GRK). Today's first international trade demonstrates the readiness and comprehensiveness of the IDXCarbon system in supporting both domestic and international carbon trading.”

The success of international carbon trading depends on collaboration among nations, private sector/industry, financial institutions, philanthropy, banking, and other key stakeholders. At its core, carbon trading is a collective action, where the role of each stakeholder is interconnected and essential.