Incredible! Jokowi Mentions Carbon Exchange Potential Almost Equal to State Budget 2023

Jakarta – President Joko Widodo (Jokowi) revealed that the potential of the carbon exchange (IDXCarbon) in the country could reach Rp3,000 trillion. The value is almost close to the total 2023 Indonesian State Budget of Rp 3,061 trillion and the 2024 State Budget of Rp 3,325.1 trillion.

“In my notes, there are approximately 13 tons of CO2 carbon credit potential that can be captured. And if calculated, the potential of our carbon exchange reaches Rp3,000 trillion and even more,” Jokowi said at the launch of the Indonesia Carbon Exchange at the Indonesia Stock Exchange (IDX) Building, Tuesday (26/9/2023).

Jokowi said that this is a very large number and a new sustainable and environmentally friendly economic opportunity that is in line with the world’s direction towards a green economy.
“Because we have felt the threat of climate change and we must not play games such as rising earth temperatures, drought, flooding, pollution so that concrete steps are needed to overcome it,” he explained.

According to him, the launch of carbon trading is a concrete step for Indonesia to achieve its Nationally Determined Contribution (NDC) target of 31.89 percent.

Therefore, Jokowi asked for international carbon trading as a reference and utilizing technology for effective and efficient transactions.

Then, the president asked for a clear target and time frame for both domestic and international carbon markets.

Jokowi also asked for the regulation and facilitation of voluntary carbon markets in accordance with practices in the international community, by ensuring that these standards do not interfere with Indonesia’s NDC targets.

“I am optimistic that Indonesia can become the world’s carbon axis, as long as these concrete steps are worked on consistently with all stakeholders,” he concluded.

Meanwhile, Chairman of the OJK Board of Commissioners Mahendra Siregar said the establishment of the Indonesian Carbon Exchange was a historic momentum for Indonesia in supporting the Government’s efforts to pursue the target of reducing greenhouse gas (GHG) emissions in accordance with the ratification of the Paris Agreement.

“The Indonesian Carbon Exchange will be one of the largest and most important carbon exchanges in the world because of the volume and diversity of carbon units traded and its contribution to the reduction of national and global carbon emissions. Today we start history and the beginning of a new era,” Mahendra said.

Indonesia has a target to reduce GHG emissions by 31.89 percent (unconditionally and without international assistance) or 43.2 percent (with international support) from its normal (or Business As Usual) emission levels by 2030.
In accordance with the enactment of Law No. 4 of 2023 on Financial Sector Development and Strengthening (P2SK), OJK has the authority to regulate and supervise carbon trading through the Carbon Exchange in Indonesia.

According to him, a very important goal of carbon trading in Indonesia is to provide economic value for carbon units produced or for any efforts to reduce carbon emissions in order to achieve the NDC target and optimize Indonesia’s potential as a carbon unit producer country.