The Financial Services Authority (OJK) is finalizing the Draft OJK Regulation (RPOJK) regarding carbon exchanges.
OJK Chief Executive of Capital Market, Financial Derivative and Carbon Exchange Supervision Inarno Djajadi said this was in line with the government’s target of reducing Green House Gas (GHG) emissions by 31.89% with its own efforts and by 43.2% with the help of international participation by 2030 .
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“Of course, this is an encouragement and increases feelings of optimism to be able to hold the first trading of carbon units on the carbon exchange next September,” said Inarno in his speech at the OJK National Seminar in Surabaya, Monday (31/7/2023).
According to him, Indonesia has enormous opportunities in carbon trading, one of which is in the electricity generation subsector. So far, Indonesia has 99 coal-based Steam Power Plants (PLTU), equivalent to 86% of the total coal-fired PLTU operating in Indonesia.
The government targets that PLTU participating in carbon trading this year will include PLTU over 100 Megawatts. Furthermore, it will increase over time, namely PLTU above 50 Megawatts in 2024, all PLTU and PLTG in 2025.
Apart from the power generation subsector, carbon trading in Indonesia will also be enlivened by other sectors that will transact on the carbon exchange, such as the Forestry, Plantation, Oil and Gas, General Industry sectors, and so on.
To support this opportunity, OJK will also continue to ensure that infrastructure equipment is not only fit but also complete, starting from primary, secondary and market infrastructure so that it can support the operation of the carbon exchange. OJK also ensures that its monitoring mechanisms are in line with the national targets set in the Nationally Determined Contribution (NDC).
Previously, the Ministry of Energy and Mineral Resources (ESDM) began implementing a carbon trading mechanism in the coal steam electric power plant (PLTU) sector. This activity is a carbon credit buying and selling activity between PLTU units.
The Director General of Electricity (Dirjen Gatrik) of the Ministry of Energy and Mineral Resources, Jisman P. Hutajulu, explained that in essence generating units that produce emissions exceeding the limit are required to purchase emissions from PLTU units that produce emissions below the limit. This is stated in the value of the Technical Approval for Upper Emission Limits for Business Actors (PTBAE-PU) which has been regulated by the Ministry of Energy and Mineral Resources.
According to Jisman, the value of carbon traded between PLTU units in the country is estimated to range from US$ 2 to US$ 18 per ton. Meanwhile, if carbon trading is carried out with international parties, the price ranges from US$ 2 to US$ 99 per ton.
source: https://www.cnbcindonesia.com/market/20230801075152-17-458970/2025-seluruh-pltu-masuk-bursa-karbon-kiamat-batu-bara-nyata