Remarks of President of the Republic of Indonesia at the Launching of Indonesia Carbon Exchange and First Carbon Credit Trading at the Main Hall of Indonesia Stock Exchange Building, Special Capital Region of Jakarta, September 26, 2023
Assalamu’alaikum warahmatullahi wabarakatuh,
May peace be upon us all,
Distinguished ministers, leaders of the House of Representatives in attendance, governors, regents, and mayors,
Distinguished leaders, Head, and members of the Board of Commissioners of the Financial Services Authority (OJK), leaders of the Board of Commissioners and Board of Directors of Indonesia Stock Exchange (IDX), association of financial services institutions,
Ladies and Gentlemen,
First of all, I would like to congratulate the OJK, IDX, and related ministries for the launching of the first carbon exchange in Indonesia. It marks the beginning of carbon credit trading in our country, Indonesia. This is Indonesia’s real contribution to fight with the world against climate crisis, against climate change. The results of the trade will be reinvested in efforts to protect the environment, especially by reducing carbon emission.
Our country, Indonesia, has a great potential in nature-based solutions and is the only country that can achieve 60 percent of its carbon emission reduction target through nature. Based on my notes, there is approximately one gigaton of carbon credit potential and if calculated, our carbon exchange potential reaches Rp3,000 trillion or even more than Rp3,000 trillion, Rp3,000 trillion or even more. This is a huge number, which will certainly open new economic opportunities that are sustainable and environmentally sound, in line with the global shift to green economy.
We can be impacted and have already felt the impacts of climate change and we cannot take this lightly. Global temperature increase, droughts, floods, and pollution. Concrete steps need to be taken to overcome them and the carbon exchange we are launching today can be a concrete step to achieve the Nationally Determined Contribution (NDC) target.
For that reason, I order that first, international carbon standards be used as a reference and do utilize technology for transactions to make them effective and efficient. Second, there must be a target, there must be a timeline both for domestic market and international market. Enter that market immediately. Third, regulate and facilitate voluntary carbon market according to practices in international communities and ensure that the international standards do not hinder the achievement of Indonesia’s NDC target.
I am highly optimistic that Indonesia can become the world’s carbon [market] axis as long as those concrete steps are taken consistently and jointly by all stakeholders, including the Government, private sector, and others.
That concludes my statement and by saying bismillahirrahmanirrahim, I hereby launch Indonesia Carbon Exchange today.
I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh.