Indonesia has entered a new era with the launch of the carbon market. President Jokowi officially launched the Indonesian Carbon Exchange (IDXCarbon) on Tuesday (26/9/2023) at the Indonesian Stock Exchange (IDX). The IDX has also obtained a Carbon Exchange Organizer business license from the Financial Services Authority (OJK).

This market is designed to facilitate the trading of carbon credit certificates issued for projects or activities aimed at reducing greenhouse gas emissions from the atmosphere, or for companies that produce carbon emissions below the government's pollution threshold.

Previously, in February 2023, Indonesia launched the first phase of mandatory carbon trading for coal-fired power plants involving 99 PLTU with a price range of US$2 to US$18 per ton. That price is higher than yesterday's trading opening on IDXCarbon which was only around US$4.51 per ton. However, it is far lower than the carbon price in the European Union, which has reached US$80 per ton.

Read more from Dr. Zainal Arifin article on Manajemen ISMS Column at kompas.id -click here-