President Launches Inaugural Carbon Trading on Indonesia’s Stock Exchange
“Indonesian President Joko Widodo (Jokowi) officially launched and inaugurated the First Carbon Trading on the Indonesia Stock Exchange, at the Main Hall of the Indonesia Stock Exchange (BEI) in Jakarta on Tuesday, September 26, 2023. The President stated that the establishment of the Indonesia Carbon Exchange is a tangible contribution from Indonesia in its efforts to address the impacts of climate change
“This is Indonesia’s real contribution to the global fight against the climate crisis, against the climate change crisis, where the results of this trading will be reinvested in environmental conservation efforts, particularly through carbon emissions reduction,” said the President.
President Jokowi revealed that Indonesia has tremendous potential in nature-based solutions and is the only country where about 60 percent of its carbon emissions reduction fulfillment comes from the natural sector. According to the President’s records, there is approximately 1 gigaton of carbon dioxide (CO2) potential carbon credit that can be captured.
“If calculated, the potential of our carbon exchange could reach Rp3,000 trillion, or even more. A very significant figure, which will undoubtedly become a new sustainable and environmentally friendly economic opportunity, in line with the world’s direction towards a green economy,” he said.
The President emphasized that concrete steps are needed to address climate change because its threats are already being felt globally, from rising temperatures, droughts, floods, to pollution.
“The carbon exchange we launched today could be a concrete step, a significant step for Indonesia to achieve its NDC (Nationally Determined Contribution) targets.
Regarding carbon trading, the President also emphasized three things. First, the President stressed the importance of using international carbon standards as a reference and utilizing technology for transactions to be effective and efficient.
Second, the President called for the establishment of targets and timelines, both for the domestic market and future international markets.
The third is that the President requested the regulation and facilitation of voluntary carbon markets in accordance with international community practices and to ensure that these international standards do not disrupt Indonesia’s NDC targets.
“I am very optimistic that Indonesia can become the world’s carbon hub, as long as these concrete steps are consistently and collectively pursued by all stakeholders, including the government, the private sector, society, and together with other stakeholders,” he concluded.”