The Financial Services Authority (OJK) launched a new guidebook titled “Understanding Carbon Trading for the Financial Services Sector” on Tuesday, July 15, 2025, aimed at  equipping financial service providers with essential knowledge to navigate risks and opportunities in the rapidly growing carbon trading market.

“This book identifies potential risks in carbon trading, including fraud, misstatement, and greenwashing,” Mahendra Siregar, Chairman of the OJK Board of Commissioners, said while addressing the launch event at the Indonesia Stock Exchange (IDX) in Jakarta, on Tuesday, July 15, 2025.

He emphasized that a robust governance system, effective oversight, and full engagement of all stakeholders are crucial to ensure integrity and credibility in Indonesia’s carbon market. These qualities, he cited, must reflect the country’s broader financial and regulatory ecosystem.

Although the title is tailored to financial institutions, the book is intended for a broader audience − including companies across industries and the general public.

“It’s for all stakeholders, not just those in the financial sector. While stakeholders in finance and carbon markets may already have a good understanding, we need to broaden awareness among others,” Mahendra said.

The book outlines the policy framework, regulations, and institutional mechanisms guiding carbon market operations in Indonesia. It underscores principles of transparency, integrity, and sustainability as foundational to the market.

Before any carbon unit is traded under the supervision of the OJK and on platforms like IDX Carbon, it must first be registered in the National Registry System (SRN) for Climate Change Control.

The guidebook explains the types of carbon units recognized in Indonesia’s two main trading schemes:

● Cap-and-trade (mandatory market): Technical Approval for Business Actor Emissions Limit (PTBAE-PU);

● Voluntary market: Greenhouse Gas Emission Reduction Certificates (SPE GRK) from verified climate mitigation projects.

Additionally, it provides crucial insights into common fraud schemes in the carbon market, aiming to educate both buyers and sellers on how to protect themselves, namely on carbon credit manipulation or duplication; forgery of credits; false environmental claims (greenwashing); tax and securities fraud; money laundering; and cybercrime.

Since its inception in September 2023, IDX Carbon has facilitated the trading of nearly 1.6 million tons of CO₂-equivalent SPE GRK, with transaction values reaching approximately Rp 77.95 billion. The platform has seen a steady increase in participation − from just 16 users to 113 as of July 11, 2025.

The book represents a key step by OJK in fostering market literacy, improving transparency, and protecting participants in Indonesia’s expanding carbon econo