OJK Leads the Charge: Indonesia’s Carbon Credit Market Takes Off

The Indonesian Carbon Exchange (IDX) was established to facilitate carbon trading in the country, under the mandate of the Financial Services Authority (OJK). The OJK appointed the IDX to manage the exchange through Decree No. KEP-77/D.04/2023 on September 18, 2023. All carbon credits traded on the exchange must be registered in the SRN PPI system.

“The Indonesian Carbon Exchange was officially launched on September 26, 2023. In the first half of 2024 alone, approximately 114,000 carbon units were sold, with total transactions valued at around IDR 5.8 billion,” Dedra concluded.

The success of the carbon credit system in Indonesia could serve as a model for other developing nations facing similar environmental challenges. By ensuring active participation from both the private and public sectors in carbon trading, Indonesia is not only addressing its own emission reduction goals but also contributing to global efforts to combat climate change.

Moreover, the involvement of OJK and the establishment of the Indonesian Carbon Exchange represent significant strides towards creating a transparent and accountable marketplace for carbon credits. This system enables businesses to align their sustainability goals with regulatory frameworks, fostering an environment where economic growth and environmental responsibility can coexist.

As climate change remains a pressing global issue, the role of carbon credits is expected to grow. Initiatives like those discussed in the Green Skilling webinar highlight the potential for carbon credits to drive innovation and investment in green projects, ensuring that economic development in Indonesia and beyond does not come at the expense of the environment. ( Uki Ruknuddin)