Indonesia to Implement Open, Registered Carbon Trading Policy: Minister

President Jokowi chairs a Cabinet meeting on carbon trading policy, Wednesday (05/03). Photo by: PR of Cabinet Secretariat/Agung.

Indonesia will implement an open and registered carbon trading policy, Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia has stated.

“We have decided that carbon trading in Indonesia is open but it must be registered,” Bahlil said after attending a Cabinet meeting chaired by Indonesian President Joko “Jokowi” Widodo, Wednesday (05/03) at the Presidential Palace, Jakarta.

Bahlil added that the carbon trading in Indonesia is carried out in the carbon exchange supervised by the Financial Services Authority (OJK). Meanwhile, registration will be carried out through Ministry of the Environment and Forestry.

In the meantime, Coordinating Minister for Economic Affairs Airlangga Hartarto said that carbon trading would use an electronic-based system that would make tracing easier.

“The trade will be supported by an electronic trading system, based on technology that can trace the source of the carbon, including which forest, industry, or type of energy that generates the carbon. Thus, even though it is traded several times, we can maintain the traceability,” Airlangga said.

The Government has set a nationally determined contribution (NDC) target of 29 to 41 percent in 2030 and net zero emissions (NZE) by 2060. In the NDC document, Indonesia sets the target of reducing emissions by 31.89 percent with its own measures, and by 43.20 percent with international support by 2030. (FID/TGH/UN) (RI/MMB)