Monday, June 5, 2023

Indonesia’s OJK aims to launch carbon exchange by September

Reading Time: 2 minutes
Intelligence Author


Mahinda Arkyasa



The Financial Services Authority (OJK) aims to launch carbon exchange trading in Indonesia by September 2023. To achieve this target, OJK Board Commissioners Chairman Mahendra Siregar said that the financial watchdog plans to issue an OJK regulation (POJK) on carbon exchanges next month.

Furthermore, Mahendra explained that the initial plan for launching carbon exchange trading is to use results recognized as part of the result-based payment (RBP), which includes 100 million CO2. OJK also plans to connect the national registration system at the Environment and Forestry (LHK) Ministry with the carbon exchange information system.

Currently, the Environment Ministry is finalizing the RBP, while the OJK is preparing for all devices, national registration system, emission reduction certifications, and authorization in parallel.

In addition, the Environment Ministry is also currently drafting a ministerial regulation on carbon in the forestry sector and a protocol for overseas carbon trading through investment cooperation to achieve Indonesia’s Nationally Determined Contribution (NDC) targets and other special objectives.

Assessing stakeholder readiness for Indonesia’s carbon exchange

Carbon trading is a market-based mechanism that aims to reduce greenhouse gas emissions by buying and selling certificates of carbon ownership set out in one ton of CO2. The carbon units sold can only be counted as greenhouse gas emission reduction achievements by the buyer, and double counting and double claiming are not allowed.

The government aims to launch the carbon exchange in conjunction with the enhancement of the National Registry System (SRN) and the Carbon House of Indonesia’s National Focal Point United Nations Framework on Climate Change Conference (NFP-UNFCCC) in June. In addition, the government has also scheduled the development and improvement of the SRN’s main facilitation for the same month. 

The development of the Standard Operating Procedure (SOP) for Indonesian Carbon Trading, which will be integrated into the SRN-Carbon registry-Carbon Stock Exchange system, is currently in progress. The SOP will provide guidance to those implementing climate change mitigation and adaptation actions, encouraging their commitment to achieving Indonesia’s NDC target and preparing them for carbon trading.

The Indonesian Climate Change Control and Carbon Trading hub is being established as an information service center, guidance resource, operationalization site for SRN, carbon credit mapping center, and a means to ensure that Indonesia’s NDC target is met and that tradable carbon credits are available. 

The Indonesia Stock Exchange (IDX) has appointed a consultant to conduct a study on carbon trading in other countries, including from the supply and demand side. IDX is also preparing its existing system for carbon trading through the Indonesian Securities Guarantee Clearing and Central Securities Depository (KPEI-KSEI), either integrated or separate, in the stock exchange. 

The Indonesia Commodity Derivatives Exchange (ICDX) has also expressed its readiness to be the organiser of carbon trading in Indonesia. 

However, when benchmarked against other countries, commodity exchanges are typically the primary organisers of carbon trading. For example, in the US, the Commodity Future Trading Commission (CFTC) oversees carbon trading. Meanwhile, President Joko “Jokowi” Widodo recently announced that carbon trading in Indonesia would be conducted through the Indonesia Stock Exchange. 

Intelligence Author


Mahinda Arkyasa




We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.


The Indonesian government has set zero tax for vehicle tax and transfer of ownership tax for electric vehicles. The new policy is expected to ramp up electric vehicles sales.
The Ministry of Energy and Mineral Resources amended provisions concerning Gross Split in oil and gas contracts. The amendment provides special incentives for unconventional oil and gas projects in Indonesia.
President Jokowi has appointed OJK to draft regulation to regulate carbon trading mechanism. Based on estimation, the country can generate up to US$565.9 billion from carbon trading.
The Indonesian government introduce a new regulation on taxes related to gold and jewelry sales. the new regulation is intended to provide convenience, legal certainty, simplicity, and lower rates.
Indonesian businesses are raising concerns over EU’s new deforestation law, which obliges countries to provide geolocation data of where their products were produced. In addition, with the new law, companies will only be allowed to sell products in the European Union if the supplier of the product has issued a so-called “due diligence” statement confirming that the product does not come from deforested land.
Members of the Indonesian E-Commerce Association take steps to prevent the sales of used imported clothing on their platforms, including utilizing AI.