TEMPO.CO, Jakarta - The Indonesian Stock Exchange (IDX) will begin the development of a carbon trading system in 2023. The purpose is to keep pace with the development trend in the application of ESG (Environmental, Social, and Governance) as well as sustainable finance at the global exchange level.

"Therefore, the ensuing initiative from the first IDX plan is to support the development of the carbon trading system that will begin in 2023," said Director of Corporate Assessment of IDX, I Gede Nyoman Yetna, at the 2022 Mandiri sustainability forum event, Wednesday, November 2, 2022.

Moreover, Nyoman continued to strengthen the application of the ESG principle, and his group will assign all information regarding the ESG scoring of companies listed on IDX on its official website for easy access.

"IDX also intends to publicize information about ESG assessment on the website and hopefully the website can be accessed starting this year," said Nyoman.

Particularly related to carbon trading, PT Pertamina has collaborated with IDX to make it happen and also supports the decarbonization program and the 2060 Net Zero Emission (NZE) target in Indonesia.

The cooperation was confirmed through the signing of a memorandum of understanding between Pertamina Director of Strategy, Portfolio and Business Development, Atep Salyadi Dariah Saputra, and IDX President Director, Iman Rachman in Bali, 18 October 2022.

"This will be the next stage of the steps we are taking for the carbon business as an effort to accelerate the development of the national and international carbon trading ecosystem," Atep said, quoted from a written statement, Thursday, October 20, 2022.

Pertamina assesses IDX as a company that engages in the implementation of the Stock Exchange in Indonesia which could together develop an initiative called the Carbon Business Build.

Pertamina and IDX will review the potential business cooperation so that they could improve understanding and optimize their respective duties and function for the management of the voluntary carbon market and carbon market compliance.

The potential for carbon trading cooperation that can be implemented is through the benefit of IDX's carbon trading infrastructure in carrying out carbon trading transactions through the carbon exchange in Indonesia.

Another potential can also be through the development of a national carbon trading ecosystem, internal and/or international carbon trading, as well as sharing knowledge related to the development of national and international carbon trading businesses.

Arrijal Rachman | Translator: Intern / Imaji Lasahido