Now Open: Here’s How to Buy and Sell on Indonesia’s Carbon Exchange

idx-carbon

JAKARTA, PROGRES.ID – Indonesia has now officially established its own carbon exchange called IDXCarbon. This exchange operates under the auspices of the Indonesia Stock Exchange (BEI) as its operator. Through IDXCarbon, companies that have successfully reduced carbon emissions can sell their carbon credits to companies that exceed emission limits.

Jeffrey Hendrik, Director of Business Development at the Indonesia Stock Exchange (BEI), explained that currently, participation in the purchase of carbon credits is only open to institutions, a practice that aligns with many global carbon exchanges.
“Indeed, in the global carbon exchange, this is the practice. For example, the Korea Carbon Exchange, which has been running for 8 years until now, still only serves institutions because its goal is how the country can achieve net-zero through carbon trading, not for speculative purposes,” he said while speaking at the BEI Building, South Jakarta, on Tuesday (26/9/2023), as quoted from Detik Finance.

In the initial stage, participation in carbon trading activities at IDXCarbon is limited to entities with offices and activities in Indonesia. Likewise, entities wishing to provide carbon credits must be registered in the National Registry System for Climate Change Control (SRN-PPI) owned by the Ministry of Environment and Forestry (KLHK).

According to Jeffrey’s explanation, carbon credit buyers will also have the flexibility to resell the credits at prices adjusted to market conditions. For example, the price of Pertamina products traded at yesterday morning’s opening was around Rp 69,900 per tCO2e, but by 11:00, the price had risen to Rp 77,000.

“Prices can fluctuate, up or down, depending on market mechanisms. So, if someone wants to sell their carbon credits for Rp 50,000, Rp 60,000, or Rp 80,000 tomorrow, they can do so according to market mechanisms,” he explained.

How to Register as an IDXCarbon User

To become a user of IDXCarbon’s services and purchase available carbon credit units, entities can register by filling out the form available on the official IDXCarbon website, www.idxcarbon.co.id.

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *