Indonesia Launches Carbon Exchange; Jokowi Says Its Potential Hits Rp3,000tn

TEMPO.CO, Jakarta - Indonesian President Joko Widodo or Jokowi officially launched the country’s first carbon exchange today, September 26, 2023. He said this is the real contribution to fight with the world against climate crisis.

“The potential of carbon exchange can reach at least Rp3,000 or even more,” the President said at the launch at the Indonesia Stock Exchange on Tuesday, September 26, 2023.

According to him, the figure is in line with the high level of carbon credits. Proceeds from the trade will be reinvested in efforts to protect the environment, especially to reduce carbon emissions. Indonesia aims to achieve net zero emissions by 2050.

Jokowi said the exchange would create a new economic opportunity that is sustainable and environmentally friendly as the world moves toward a green economy.

“Concrete steps are needed, and the carbon exchange that we launch today can be a big step for Indonesia to achieve its emissions goal,” he added.

He went on to outline three concrete steps that need to be taken. First, use international carbon standards as a reference. “Use technology for effective and efficient transactions,” he said.

Secondly, set a target or timeline, for both domestic and international markets. Thirdly, regulate and facilitate a voluntary carbon market in line with practices in the international community and ensure that they do not interfere with Indonesia's Nationally Determined Contribution (NDC) targets.

Jokowi expressed optimism that Indonesia could become the world's carbon axis if all stakeholders, including the government, private sector, and community, take consistent steps together.

DEFARA DHANYA PARAMITHA

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